GDX Bullish Breakout from 10-Month Falling Wedge

Since April of last year, the Market Vectors Gold Miners ETF (GDX) has formed a 10-month falling wedge pattern. Falling wedges typically build up a bullish bias as prices slide downward. The bullish bias can only be realized when prices break above the upper boundary of the wedge.

Today, it happened to GDX with a powerful upward breakout from the falling wedge pattern. Together with a breakaway gap and an one-day 3.3% advance, the bullish breakout of the falling wedge puts GDX on a launch pad. A $29 price target is projected for GDX. This price target implies a potential 20% gain measured from the breakout price.