No folks, I am not a day trader! :-)
But that does not preclude me from dialing in to short-term views, and a short-term view I found interesting was in GDX and GDXJ. When seeing the predictable pullback today my first thought was ‘typical… gold stocks can’t even sustain beyond a day or two’. My second thought was ‘let me look at some charts’ and so…
Daily charts show a bounce bottom that has not proved a thing beyond the Thursday and Friday bounce. Further, this is taking place within daily, weekly and monthly downtrends. We know this and they are the caveats and the default positions for non traders. These are in longer-term downtrends and bounce or no bounce exist below an important breakdown level equating to HUI 188, per the ongoing analysis.
That said and for anyone interested in short-term views, the 60 min. charts are showing patterns that could still be construed as bottoming for a bounce that can continue.
GDXJ’s pattern would measure to 30 if it were to play out by putting in a right side shoulder and getting above 26.
The GDX pattern would measure to 20.
They are both in 60 min. up trends by AROON so today’s downside did not cancel that.
Interestingly, the above noted measurements equate to HUI 180, which is well up toward our final bounce resistance parameter of 188.
The point of the above is that gold stocks could still be in bounce mode after 2 up days and a zonk down today.