GDXJ has broken down after triggering a less-than-stellar ‘mechanical’ buy signal a few weeks ago at x=112.02 (the green line). Even so, a smaller pattern that began with the 131.36 high recorded on May 6 implies that bulls will have a chance to regain the upper hand when the descent reaches the 98.21 ‘D’ target of the pattern. This ‘hidden support’ looks good enough to attempt bottom-fishing there with a stop-loss as tight as 20 cents. Using a reverse-pattern of small degree (aka ‘camouflage’) is the preferred way to get onboard, but however you do it, expect a tradeable reversal to occur at or very near D. _______ UPDATE (Jun 9, 11:49 a.m.): Even with gold getting hammered today, the 98.21 target worked almost perfectly for bottom-fishing. GDXJ has bounced $1.08 so far this morning from an opening-bar low of 98.28. If you got aboard, you’re on your own, but be sure to take a partial profit early on.
GDXJ – Junior Gold Miner ETF (Last:99.33)