GDX: Gold Miners, Royalty And Exploration; Searching For A Low

Gary Tanashian63.34K FollowersFollow5ShareSavePlay(7min)CommentsSummaryGold stocks (GDX) have corrected to projected downside targets, aligning with expectations for a post-bullishness pullback.Sector fundamentals diverge: mining companies face rising energy costs, while royalty and exploration firms remain relatively insulated.BPGDM signals oversold conditions akin to the 2015 low, suggesting a favorable risk/reward setup for a tradeable rally.While further short-term downside is possible, I am selectively adding quality gold stock positions and reducing hedges.While all aspects of market require active and vigilant management, that is especially so in the volatile precious metals sector. We do exactly that. UniqueMotionGraphics/iStock via Getty Images At time of posting, President Trump has backed off of an ultimatum to Iran. This came after gold mining stocks (GDX) and the metals had tanked in pre-market on Monday, registering the lower of ourThis article was written byGary Tanashian63.34K FollowersFollowGary Tanashian is proprietor of NFTRH.com. Actionable, hype-free technical, macro economic and sentiment analysis is provided in the premium market report 'Notes From the Rabbit Hole' (https://nftrh.com/nftrh-premium/). Complimentary analysis and commentary is available at the public website (https://nftrh.com).Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.Most precious metals bear positions have been covered. At time of writing I still hold 50% of my DUST hedge position.Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.