Although this popular gold vehicle has turned weakly higher since the first week in December, it will become a speculative short sale if and when it reaches 46.56, the midpoint pivot of the pattern shown. The mere breach of that ‘hidden’ support in October on the way down implied that GDXJ would eventually make a potentially important (and aggressively tradable) low at 18.56. Alternatively, it would require a rally exceeding 41.92 to suggest that bulls are regaining their strength. Much more is needed to decisively end the bear market: specifically, a push above the 68.84 peak recorded back in March. ______ UPDATE (January 20, 5:15 p.m. EST): This ETF has bettered the 36.56 midpoint support/resistance, but not by much. For trading purposes it is a spec short here, albeit with a very tight stop-loss. From an analytical perspective, however, we should merely be waiting to see whether GDXJ is able to leap the pivot with ease. Any further progress to the upside, particularly progress that closes above 36.56 — would be the first encouraging sign we’ve had in this vehicle since August. _______ UPDATE (January 22, 11:15 p.m.): The impressive run-up to 38.16 is being corrected brutally, but the initial move will nevertheless remain bullishly impulsive on the daily chart as long as the pullback doesn’t exceed 33.20 to the downside. Meanwhile, it would take a ‘booster rally’ of at least 1.25-points to generate a follow-through rally with additional potential of nearly $4. _______ UPDATE (January 29): This ETF is back in bullish gear after dipping no lower than 34.28. Immediate potential is to 39.30 once decisively past the 36.79 midpoint resistance shown. _______ UPDATE (February 2, 9:31 p.m. EST): GDXJ sold down hard after topping within pennies of the 36.79 midpoint pivot noted above. The bull trend from late December’s low remains technically intact, although short-term indicators suggest buyers and sellers could skirmish with no clear winner for the next few days. ______ UPDATE (February 10, 10:39 p.m. EST): Next stop on the way higher would appear to be 41.45. On the hourly chart, here are the coordinates: A= 31.05 on 1/9 and B=38.22 on 1/23). As always, an easy move past the target would presage still higher prices. _______ UPDATE (February 18, 12;15 a.m.): Judging from the way buyers blew past the 43.20 midpoint pivot of the pattern shown (see inset), a further run-up to at least 46.65 appears all but certain. _______ UPDATE (February 19, 11:15 p.m.): GDXJ got slammed yesterday, but the selloff is not yet impulsive on the hourly chart. The 46.65 target would be negated, however, and the move would become impulsive, if it exceeds 39.75 to the downside.
