While I’m expecting gold to test $1100, I respect the technicals (always) and this AM there is a clear breakout in GDX (GDX, quote) and a new high, confirming that the recent pullback was shallow.Image courtesy Bullion Vault: http://www.flickr.com/photos/bullionvault/

My technical guru and partner, Diego, points out that the clear breakout over the 20d and 50d was a quick +18%.

See chart, at the very least we should be testing the 200d around $25.92 over the next few weeks.

Use a $22 to $21.50 STOP depending on how tight you want to run it!sg2014011735057

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