With the current focus on gold and silver futures calling for moderately bearish outcomes, I’ve selected a GDXJ chart that shows a potential best-case scenario. It implies that the 47.14 low that ended the week came close to fulfilling a minor d correction target at 46.69. If so, and the gold miners are close to an interim bottom, that would imply bullion prices are also about to turn higher. Regardless, GDXJ can be bottom-fished at ‘d’ with a reverse-pattern trigger of small degree (i.e., ‘camouflage’). Alternatively, if sellers simply shred ‘d’, expect more downside to at least 44.75 (daily chart, A= 50.57 on 11/7). _______ UPDATE (January 5): Last week’s rally failed to generate an impulse leg on the daily chart because its 44.91 apex fell 18 cents shy of surpassing the 45.o8 ‘external’ peak recorded on December 20. This disappointing price action implies that the 40.21 ‘D’ target is still likely to be reached.
GDXJ – Junior Gold Miner ETF (Last:44,25)
