Returning to our short-term management charts (60 minute charts, only for those managing the short-term) here are the updated views of GDX and GDXJ. Both items have stuck to the plan very well since the bounce began.
They hit (GDXJ) and exceeded (GDX) our targets (30 and 20 respectively) and obediently pulled back. But the bounce (or rally) is not yet indicated to be over.
First of all, today is a data rich environment for economic news. So there could be some news related volatility (isn’t that the M.O. of this policy-stoked FrankenMarket?). Here is the schedule…
Turning to GDX, the upside target of 20 was reached and proved to be resistance. It would be pleasant for the bull case if it declined no lower than 19, but there is stronger support at 18.50. 19 would be roughly a 38% Fib retrace and 18.50 roughly a 50% retrace from the low on Nov. 5.
GDXJ looks to have its best support at around 26 (50% Fib retrace) because the 38% Fib retrace has no visual support associated with it.
I realize that gold and silver are up in pre-market but again, we have an economic data fest today so things could jump around. The above are just views of an ongoing short-term road map. Gaps have been closed and if support at around the 50% retrace levels hold up there could be another leg higher toward the equivalent of HUI 188, which we have noted would be a key bigger picture resistance level. HUI has thus far made it to 181.33 before yesterday’s reversal.