Miners' Momentum: A Short-Term Reversal Play

Based on a technical analysis of the gold miners market from a weekly and 4-hour perspective, here is a trade idea to short GDX on a potential correction, mirroring the silver/Gold thesis.

Short Trade Thesis: Weekly Chart Analysis
The weekly chart for the VanEck Gold Miners ETF (GDX) reveals an extended and overbought price action. The current rally, driven by the surge in gold prices and improved profitability in the mining sector, has been steep and rapid, pushing the ETF to new multi-year highs.

Extended Price Action: The weekly chart's Relative Strength Index (RSI) is signaling extremely overbought conditions, a classic indication that the upward momentum is likely unsustainable in the short term. The price has moved far from its key moving averages, creating a significant "extension" that often precedes a period of consolidation or a corrective pullback.

"Skipped" Support: During this powerful ascent, the GDX price "shot through" a previous major resistance level around $62.50. According to classic technical analysis principles, a significant resistance level, once broken with conviction, becomes a new support level. The price has not yet retested this crucial level. A healthy correction would involve a retracement back to this zone to confirm its new role as support before any potential further move up.

Trade Idea: Short GDX
This trade idea is a counter-trend position, targeting a short-term correction within the broader bullish trend. The goal is to capitalize on the likely mean-reversion move back to the closest, most significant support level.

Entry: Short GDX at the 4-hour chart resistance line at or near the recent multi-year high of $70.11. (Shown by Red arrow)

Take-Profit (Exit): The logical exit is at the immediate 4-hour support line and psychological level of $61.00. (Shown by Green arrow)