Wednesday, January 26, 2011

GDX + bullish reversal = bullish outlook for gold/silver

GDX bounced off its long term trend line today. I was watching it very carefully, and knew that any breaking of this support line would be someone worrying. Further, gold and silver experienced a textbook intraday reversal. The candlestick formation today was very bullish, rising from a negative base and ending sharply higher for the day. Lets see how things play out. This could be the end of the correction that began at the turn of the year.

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