GDXJ – Junior Gold Miner ETF (Last:38.30)

GDXJ looks like it will continue to grope its way lower to reflect softening quotes for bullion futures. If the bloodletting should reach the green line (x=35.58), however, it would trigger a ‘mechanical’ buy that we should not pass up. Corrections that traverse Hidden Levels from above p2 down to x often yield profitable ‘mechanical’ entries at the low, even if the anticipated bounce does not always achieve the D target.  If bulls were going to find traction somewhere above x, it would have happened with last Thursday’s dip to D=37.73 of a corrective pattern begun on April 13 from 43.89. Alas, the support was breached, suggesting there is more downside to endure.