A new indicator, the Parabolic Stop and Reverse (psar), to play with in my scans. This is all sorts of exciting.
GDX, the gold miners exchange-traded fund, shows a psar bull signal on a gap up. The stock is now trading up 2.8% from yesterday's close, at resistance set in mid-February.
If the price can break above $46, it has a fairly clear shot up to $50. The broader trend has been sideways since February in pause amid a decline that began last December. So a directional trade would be counter-trend.
The structure can also be seen as an ascending triangle, about $5 wide, with a breakout around $46. The rule of thumb would be upon breakout, traders can expect a $5 rise, to around $51.
The stock is trading above the 20-day moving average. Person's Proprietary Signal (pps) flashed bull yesterday. The Money Flow Index (mfi) is in the neutral zone, and the Stochastic (sto) is moving into overbought territory.
Regarding the sto, a reversal down to around $41.60 would be consistent with the ascending triangle hypothesis.
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