GDX hit a bottom at $17.28 and is now looking like it is correcting. If this big bullish phase is on, then GDX must head higher, leaving all previous resistance levels in the dust, or should I say, “gold dust”.
There may be a bottom in GDX today, but the rest of the day could still change things. Above all, we must see bullish sequences with good corrections, as that is the sign of a bullish phase in effect.
The Gold/GDX Ratio is sitting at 64.25:1. This is cheap, but still far away from being extreme of 84:1.
As this GDX bullish phase advances, then this ratio will start to compress. Not until we get to a ridiculous expensive ratio, would GDX be overbought.