Gold futures and GDX slightly exceeded important Hidden Pivot rally targets today, but this vehicle still has a little ways to go before it hits one. I’ve hauled out the long-term chart just so that whatever pullback awaits does not cause us too much anxiety. Even so, the midpoint (p) pivot at 43.73 will pose a crucial test for buyers. If they impale the resistance on the first try, that would be encouraging with respect to GDXJ’s ability to achieve the 61.64 target eventually. It lies 47% above current levels, compared to a target in GDX that is just 25% away. Without attempting to reconcile this discrepancy, I’ll note simply that it could mean GDX will top out at p2=52.63 while GDX goes on to reach D=36.67. We’ll attempt to build a position in this vehicle on weakness much as we’ve done in GDX. If you’re interested, stay tuned to the chat room for guidance in real time.
GDXJ – Junior Gold Miner ETF (Last:39.20)