OTCPK:MEAOD - Post by User
Post by
mstettleron Oct 06, 2016 2:31pm
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Post# 25318568
GDX
GDXIt's not just SSL - there is carnage all over the place. There is currently a lot of attention being given to the $22 level on the GDX.
The typical way of thinking is that 22 will offer support. Traders therefore set up a lot of sell stops below 22, because if the support level gives way they want to liquidate their long positions.
Watch to see whether we get a break below 22. If that happens typically we could expect a sharp move further down to the 21-20 area as the sell stops are triggered and then a quick reversal.
Happens all the time. If solid buying does not come in on a breach of 22 then there are probably much more serious problems.