GDXJ was headed higher when the week ended, but the chart suggests this was no reason to celebrate. Although a strong rally to the green line would set up an appealing ‘mechanical’ short, I doubt it will get there. That means we could try to squeeze off the short at the red line, a type of trade we don’t do that often. The stop-loss would be at 34.87, calculated by taking a third of what we stand to gain if this vehicle eventually drops to D= 30.36. Eagle-eyed Pivoteers might notice that the impulse leg is not strictly kosher, since the would-be ‘external’ low at 34.04 recorded on March 16 is in the shadow of June 29’s 33.95 low.
GDXJ – Junior Gold Miner ETF (Last:32.23)