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Gold and precious metals stocks corrected on Thursday and the short-term technical action suggests they can still correct further. The daily chart of the Market Vectors Gold Miners ETF (GDX) shows that major resistance in the $54.50-$55 area was tested before prices turned lower. The daily uptrend and good support are at $49-$51. We see similar action in the SPDR Gold Trust (GLD) as the recent gains have not been supported by higher volume as the OBV is well below its previous highs. The daily chart shows a potential rising wedge formation with good support at $118-$119.
Tom Aspray, professional trader and analyst, serves as video content editor for MoneyShow.com. The views expressed here are his own.
