Although GDXJ broke out last week, the chart shown in the inset, for August Comex futures, leaves me skeptical. I would remain at least somewhat so even if the rally were to surpass the 2477.0 peak recorded on May 24. However, I wouldn’t hesitate to buy a pullback to the red line (p=2340.60) mechanically. The by-the-book stop-loss would be at 2295.10, so we’d need to craft a less risky set-up to leverage the opportunity. For the moment, though, this vehicle remains on a ‘mechanical’-short signal.
GCQ24 – August Gold (Last:2420.70)
