Although I’ve identified bull-market targets as high as 72.23, it’s appropriate at this time to rein in our expectations, since the pattern shown, despite its steep pitch and 45.57 target, is problematical. It is the ersatz impulse leg that is most nettlesome, since it failed on the January run-up to 41.16 to surpass a key ‘external’ peak at 42.19 recorded last June. That diminishes the usefulness and reliability of the pattern and its D target. Additionally, last week’s high stalled at p2=42.24, but also at the D target of a minor pattern. A pullback to the red line would not present an ideal ‘mechanical’ buying opportunity, although a hellacious slide to x=35.39 could set up something more promising._____ UPDATE (Apr 11, 9:58 p.m.): The slight poke above an external peak a 42.19 recorded on June 2 generated a short but strong impulse leg, refreshing the bullish energy of the daily chart. Now, other than ‘voodoo’ resistance at 43.31, it looks like clear sailing all the way to 44.42, where resistance will be felt in the form of an external peak recorded in May.
GDXJ – Junior Gold Miner ETF (Last:41.86)