Last week’s rally would have been even more satisfying if it had peaked above the 21.93 high recorded on August 24 (see inset). However, it did surpass a lesser ‘external’ peak at 21.55 (#1), refreshing the bullish impulsiveness of the hourly chart. This makes it possible for us to use the small ABC pattern shown for trading purposes, although I’d suggest waiting for a second point ‘C’ low to form before jumping on it. (A strong move higher in gold futures Sunday night would likely be pre-emptive, since it would cause this vehicle to open on a gap). As always, the more easily the rally pushes past clear p, p2 and D pivots, the more likely the rally is to continue. _______ UPDATE (September 24, 7:39 p.m. EDT): GDXJ briefly pushed past a minor midpoint resistance at 20.71, but it will need to demolish it today to demonstrate that buyers have enough moxie to reach — or better yet, exceed — D=21.91, my immediate upside target.
