It’s been so long since I’ve changed the marquee for this oftentimes dud that the modest, five-day rally warrants a few words of encouragement. It projects to 33.56, and although I’m wary of serving up any ‘D’ rally targets in gold with the near-certitude that is sometimes possible in other vehicles, this target looks very likely to be reached. It is mainly a case of bulls impaling the midpoint resistance, in this case 32.07; then they closed GDXJ above it for good measure. Considering the stellar ‘technicals,’ bulls can hardly miss, right? Whether they have the gumption to achieve 36.35, the Hidden Pivot target of a larger pattern, is another story, but a close above the 33.56 pivot would be a constructive step toward that end. _______ UPDATE (Apr 14, 12:12 p.m.): As we have come to expect, gold is having excruciating difficulty getting airborne. The 36.35 target remains theoretically valid nonetheless, but not if 30.57 is exceeded to the downside. For now, I’ll recommend remaining discouraged. _______ UPDATE (Apr 16, 6:12 p.m.): Time to say “Sayonara!” In search of support, GDXJ is about to fall to at least 29.26, where a technically significant low was recorded in late January.
