As GDX climbs higher with weakness in the dollar and gold trending higher, it looks to stick close to the "pink" upchannel line. Everyone seems to be buying the uptrend, in hopes of more of the same next week.
I am cautious here as GDX has a history of meeting resistance and dropping, and NUGT seems to be played as a long term investment. I do not discount that gold is uptrending while the dollar weakens, but everyone should be on the edge of their seats as we enter into FOMC talks next week.
Either way it plays out would not be surprise me with this market, but to me a more logical scenario is that the dollar finds support and climbs higher while gold will peak out and eventually decline, taking GDX with it.
I am cautious here as GDX has a history of meeting resistance and dropping, and NUGT seems to be played as a long term investment. I do not discount that gold is uptrending while the dollar weakens, but everyone should be on the edge of their seats as we enter into FOMC talks next week.
Either way it plays out would not be surprise me with this market, but to me a more logical scenario is that the dollar finds support and climbs higher while gold will peak out and eventually decline, taking GDX with it.