Gold Miners ETF's 'key Reversal Day' Pattern Warns That Rally May Be Over

By Markets MarketWatch Pulse

The Market Vectors Gold Miners ETF's intraday swing lower produced a bearish "key reversal day" chart pattern, which warns that the rally may be over. The gold miners ETF (GDX) rose as much as 2.4% intraday to a 19-month high of $23.82, before reversing to close down 1.8% at $22.84, below the previous session's intraday low of $22.92. Many technicians believe this marks the end of the previous uptrend. A close above the pattern's high--$23.82--would be needed to negate the bearish reversal signal. The GDX has soared 78% over the past three months, far outpacing the 13% gain in the SPDR Gold ETF .

Continue Reading Below

Copyright © 2016 MarketWatch, Inc.