There is little doubt GDXJ will soon achieve the 57.17 target shown. Is that all there is, some might ask. Not by a longshot. Here’s a bigger picture that shows upside potential to as high as 72.73. More immediately, the 60.62 ‘secondary’ pivot looks like a solid bet to get hit. A puzzle, though, is what could happen after 72.23, a number that would exhaust conventional targets. It turns out that a reverse pattern begun from 84.72 in Feb 2010 allows for upside to as high as 111.59 (!) The corresponding midpoint resistance lies at 64.23, and it roughly coincides with a peak at 65.95 recorded in August 2020, implying double resistance at that level. That is a good thing, since it will create a ‘magnetic’ challenge for bulls to overcome. _______ UPDATE (Mar 19, 10:04 a.m.): After topping yesterday less than 1% above my longstanding target at 57.17, GDXJ has come down hard, trading as low as 55.70 this morning. If you are looking to augment a long position, stake out a new one, or perhaps close out a covered write initiated near 57.17, you should do so at 54.44, my minimum downside target for this correction if a Hidden Pivot support at 54.84 gives way. Worst case would be 52.03, a ‘hidden’ support where you can back up the truck to replenish your inventory of shares (or naked-short puts if you trade aggressively). Here’s a chart to help orient you.
GDXJ – Junior Gold Miner ETF (Last:56.18)
