The metals and mining ETFs have had a good run the first half of 2016. However, they have had a pullback in price from the 2016 highs the past few days. Is this a correction in an uptrend or is it going to rollover?
GLD has the highest daily volume of the gold ETFs, so it a good example for gold. Below is a daily chart of GLD. First take a look at the 100ma. It is still in a strong uptrend. If you believe this is a pullback in an uptrend, then around 123.50 would be a good spot to enter long trades. There is support at this price level and is a 50% retracement from the June 1st low. Start small and then build your position if it moves your direction. You should have a stop under the support level you protect your capital.
Next, we will look at GDX. It has the highest volume of the gold mining ETFs. Look at the 100ma. GDX is in a stronger trend than GLD. The support level is around 26.50, which is also a 50% retracement from the May 25th low. Once again, if price pulls back to these levels it could be a good place to enter long trades.
Also, keep an eye on the U.S. Dollar. It has been moving higher since the low on June 23rd. If it continues higher you should see the gold and gold mining ETFs continue to move lower. Below is a chart of UUP. It is the highest volume U.S. Dollar ETF.