Since mid-April GDX – VanEck Vectors Gold Miners ETF – has been in a trendless mode, as we can see in the blue box. In fact, GDX moved horizontally along its 10- and 20-day exponential moving averages.
Then, with a huge gap, a very bullish candlestick and high volume, price moved outside the limits of the blue box and above the upper Bollinger Band. Apart from that, it also broke above the orange resistance line at about 21.5.
Although MACD is currently moving in a negative territory, the momentum reversal from bearish to neutral has been depicted in MACD, which crossed above its signal line.
Just as important, GDX’s Relative Strength is currently moving up and above its 20-day exponential moving average as momentum builds up.