The Market Vectors Gold Miners ETF (GDX) has the right look of a potentially explosive pattern. My near- and intermediate-term work in the GDX argues that all of the action off of the December 2, 2009 high at 55.40 represents a sideways, bullish coil pattern, which if correct will resolve itself to the upside in a thrust that should test and hurdle the most recent high at 54.63, on the way to 61.00-63.00 thereafter.

Only a break of last Friday's low at 49.02 will begin to compromise my current constructive outlook.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.