GDX support and resistance

Where does GDX go from here? There is a lot of open space below with only very old support (older than 22 months).The more recent the support, the better it usually is, but some of the old support comes from years of testing highs or lows and can also be powerful. Since GDX is very over sold, and I want to be an optimist today, I will focus on recent price action and what it can mean for a possible rise. Here is an eighteen day chart:

The upper blue and lower red resistance lines are the top and bottom of the range that GDX was in for three weeks. With all of the buying at the red lines and all the selling at the upper blue line these lines should be quite strong for a while.
The lower blue line is the long term support / resistance line that trading was focused around for those three weeks.
The two red lines were support for those three weeks and now are powerful resistance and here is why. A lot of people bought in that area over those three weeks and are now down by quite a bit after the drop. Many of these people are looking for an exit so, if prices approach their break even point, they will sell, creating downward pressure on prices. At the same time, people who missed the drop will see a rise back up to the red lines as an opportunity to sell short, also pushing prices down.
Incidentally, the avoidance of these psychological pressures to buy or sell is a prime reason for buying at support areas and using tight stops. Without the worry of being down, you can make far more intelligent decisions in your trading.
Yesterday, GDX and HUI both had double bottoms with GDX going slightly lower than the previous day and HUI staying a little above. The new green support line is at the double bottom. The peak between the bottoms is the minor resistance line.
The key to a good buy on GDX would be a flag above support. I'm not too excited about the double bottom because of the measuring implications of this bottom. If the peak between the bottoms is taken out, GDX should go up the same distance above the peak as the bottom is below the peak. Roughly, 47-46 = 1 and 1+47 = 48, so the target is the red resistance line at 48. I don't generally look for quick day trades, but would rather get the bigger trends. I see two ways to get a new trend going. One is a flag above the double bottom, but below the black minor resistance. This could give the power needed to overcome the red resistance lines in one push. The other, more powerful change to watch for would be a strong push back over the red lines followed by a flag down to test those lines. These are what I will be watching for.
Happy trading.