GDXJ is all but certain to rally to at least 36.78, the D target of the pattern shown. Bulls clinched that outcome on Friday when they blew past the 35.52 midpoint resistance with a gap-up opening and never looked back. But what happens thereafter will tell us whether the rally is any different from umpteen previous rallies that ended in disappointment. An easy move through the target would suggest the uptrend is getting legs for a shot at significantly higher prices. An uncorrected continuation that tops July’s 38.09 peak would strongly suggest bulls have returned in force. _______ UPDATE (Sep 19, 10:20 p.m.): If you missed boarding at the 9/7 low, this vehicle will become an opportune ‘mechanical’ buy if and when it gets down to x=34.60. I’d suggest buying stock (stop 33.86) or naked-shorting puts, but buy calls only if using a small-pattern (i.e., camouflage) trigger that can get you in near the exact low, time-wise.
GDXJ – Junior Gold Miner ETF (Last:35.06)
