Junior Gold Miners compared to the price of gold. Fundamentally Gold should be trending higher. Or maybe a better way of saying it is fiat is trending lower compared to Gold due to its misuse. NEVER underestimate how much gold can move when real fear kicks in. This chart says there is a bit more downside left in the juniors before it bottoms out. In my opinion, nibbling now and backing up the truck when we test the ark in a few months would be the best choice.
Many see the gold bull market lasting until 2028-2030. This arc just so happens to paint a picture of the juniors miners out performing gold until just such a time. Just one more piece of evidence for the pile. also it is a great leveraged trade on gold itself!
GDXJ trade ideas
Bearish GDXJTrendlines : Downtrend lines in place. Until they break, appears to be headed much lower.
Support/Resistance : $41.93-$43.24 support area broken.
Moving Averages : Below all major MA’s: EMA 9, SMA 20, 50, 100, 200.
Chart looks like death. Bearish unless shorter-term downtrend line breaks. $35 price target.
GDXJ will lead Gold lower.
Buying GDXJ at Support with $51 Price TargetI'm looking for this support to hold and provide GDXJ with a 15% bump back up to the $51 region.
There's a clear invalidation level just under $43 to provide a tight stop-loss and 5.6 R/R ratio.
This trade could take anywhere from 2-6 weeks to play out. Be patient and let it come to you.
The idea with this trade is simple. Buy at support and Sell at resistance.
GDXJ Arc indicates low risk entry with 250% upside The fun side of the arc in the junior miners is currently playing out. At the moment, we reside at the edge of the arc, which presents a very low risk high reward entry. Completion of the arc would indicate a gain of around 250% + overshoot, in an 18 months timeframe.
GDXJChart pattern: Bull flag
Entry: Aggressive traders can enter the trade immediately as the price closed above the downtrend line. Otherwise a closing price above 54.56$ in combination with a high volume on the daily chart can be used as a more confirmed entry
Stop: 43$
Target: ~90$
Stopmanagement: SAR Parabolic weekly chart default settings