GDXJ is going to break one way or the other pretty soon. It’s in a Diamond, which is a consolidation pattern, usually thought to have no bias between trend continuation (in this case up) or reversal. If it ends up breaking down it will have been a volatile reversal pattern that whipsawed everybody up and down for a month, making sure every last desperado who felt gold stocks were running away from them got aboard.
I won’t buy GDXJ because I pick my own juniors, but I will buy GDX because I like its mix of seniors. I know it is not popular given the momo of late, but why not plot out some downside support targets and be patient; at least until this pattern betrays its intentions?
Subscribe to NFTRH Premium for your 25-35 page weekly report, interim updates and NFTRH+ chart and trade ideas or the free eLetter for an introduction to our work. Or simply keep up to date with plenty of public content at NFTRH.com. Also, you can follow via Twitter @BiiwiiNFTRH.