Friday's volume was one of the indexes heaviest positive sessions of the year. In fact, since late July, upside trade has been running very heavy. Over the last 10 weeks, the GDX has posted the most above-average upside volume days in years, all while building what is now shaping up as a major base near the $12.75 area.
Investors should consider the GDX a low-risk buy between $14 and $13.50 with an initial upside target of the $16.15-to-$16.50 area. This zone includes heavy resistance near the 2014 low as well as the August spike high.