RE:CommentsPlain and simple the entire sector was severely overbought. Both GDX and GDXJ shot to the extreme upside so the pull back was easy to see coming. As a rule I always sell my stocks on overbought scenarios (RSI over 70) and almost never regret it. I'm now a buyer at this price as I see only a little possible downside left. I think $4 is the new bottom here as the trend since January should continue to remain strong as long as gold prices remain steady at this level. Gold touched 1275 earlier and reacted positively so I think you're going to see a consolidation in a new trading range here for the next couple of weeks before gold moves higher. I think the dollar index (DXY) has a little more upside in the next couple of days so I think you'll going to see a little more near term pressure in gold. Use this as a buying opportunity because this is nothing but a dead cat bounce in the dollar.