GDXJ has been moving higher since since mid-March — reason enough for us to give bulls the benefit of the doubt for the time being. Even so, we shouldn’t let our guard down, since it is only the portion of the rally that has occurred since May 7 that is bullishly impulsive on the daily chart. The pattern shown will therefore be crucial to our analysis. Specifically, if we are to infer that significantly higher prices are likely, the first evidence in support of this would come from a rally that pushes easily past the midpoint pivot and D target (shown in inset). Neither pivot exists at this point, so there is no point in getting too far ahead of ourselves. Stay tuned. ______ UPDATE (June 5, 11:53 a.m. EDT): Bulls are an inch from squandering their immediate potential. If this vehicle closes below 24.78 for two consecutive days, or trade more than 0.45 below that price intraday, look for more downside to at least 22.26. That’s a Hidden Pivot, and you could bottom-fish there aggressively with a stop-loss as tight as 9 cents. If you’ve been short on the approach, use some of your profits to step the size of the bid.
