The Market Vectors Gold Miners ETF (GDX) is taking its lead from the gold market this morning, rather than the equity market, which has propelled the gold mining index to a new recovery high. More importantly, however, is that the price structure is attempting to hurdle a resistance plateau that represents the neckline of a base-like pattern that has developed during January.

The ability of the GDX to sustain the 32.50 to 31.00 area on any rest/digestion/pullback period argues for an eventual upside acceleration towards two optimal targets: (1) 35.00/30, and then to (2) 36.80-37.20. So far, so good, the GDX has preserved the bulk of its opening gains and remains above the January breakout plateau at 32.30/50.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.