The ‘mechanical’ short GDXJ triggered last week when it popped to the green line (x=45.02) is tempting, but I’ll suggest spectating instead, since Comex Gold’s chart is less appealing as a bear play, even a short-lived one. The shorting signal means this vehicle is likely to fall back to at least p=42.79 before it can attempt a push past the pattern’s point ‘C’ high at 47.25. For now, we should pay close attention to abcd corrections on the lesser charts, since they will be warning of a relapse if their respective downside ‘d’ targets are exceeded. ______ UPDATE (Jul 12): Buyers have blown through May 20’s peak at 47.25, but price action has been less bullish in gold futures, which are still on a ‘mechanical’ sell signal. Time will resolve this odd discrepancy, probably in bulls’ favor, but I’ll wait for it to happen before hazarding a forecast you can bank on.
GDXJ – Junior Gold Miner ETF (Last:47.25)
