Still hanging in there

GDX tested the resistance of the megaphone pattern this morning and then dropped like a rock. This is what happened in 2008 and it looked like a big drop could be happening again, however, it reversed and went back up to test the resistance again at the close. The resistance has not been broken yet, but now there is some support below as well. Here are the charts:

This chart shows all of Friday in one minute increments. You can see the morning drop and the reversal at about 10:30 AM. GDX went back up to test the resistance again and exceeded the morning high for a minute or two. The new high was important because it prevented the afternoon run from being a bearish flag. HUI also exceeded the morning high and actually closed four cents above it, but still below the resistance. A jump over the resistance appears imminent and any run up on Monday will be accompanied by a new MACD buy signal bringing in new money if sustainable support can be established.
On the less optimistic side, GDX and HUI closed again below the resistance and they closed with bearish hanging man candle sticks.

In the last thirteen days GDX has tested the black line fourteen times, first as support, now as resistance. This chart should make it clear how important this area is going forward. There is also some support below created by the low of 48.42 and the new low that occurred Thursday at 48.05. If it drops on Monday instead of jumping the resistance, we could see a turn at the 48.42 area or even the 48.05 if the first support fails.
If it jumps the resistance line it is possible it will not come back down to test it, but it could hang for two days at the highs near 51 before going up again. A nice rise followed by a flag down to the resistance / support line would be a better entry point if that happens instead.
Happy trading.