The Junior Gold Miners ETF known as GDXJ has been trending lower for fifteen months, but a recent midpoint reversal might be part of a larger turn toward bullishness. The reversal came just above the 25.105 midpoint of a weekly pattern whose impulse wave was very strong, taking out two far external prior lows and coming close to making an all-time low for the vehicle. We should watch to see which comes first, a breach of the midpoint or of the pattern’s “C” point at 30.55. A move above “C” would be the best signal yet that the long downtrend has ended. If the midpoint is decisively breached by a print below $25, the pattern’s “D” target of 19.66 might be next, although that would be a long way down in percentage terms. If GDXJ gets there, traders should use a stop at 19.49 and investors should back up the truck. (Posted by Doug “harry” McLagan)
