Friday, July 11, 2014

This is what I've been waiting for

Yesterday was a big intraday reversal in the gold miners, that happened right at the same level it did during the last rally.  The GDXJ gaped open yesterday  to about 46  and began to lose all of it as the day went on.  It closed in the 43 area.  This is precisely what I was expecting to happen which is why I haven't been buying this move higher.  This rejection will at the minimum cap prices until a big move higher on good volume can blow it away, but I think this consolidates in this low 40 level for another week or so before breaking below 40 settling in the 36-38 region.  ('d guess by mid Aug)  Watch the MA's for cross overs.  We are still in a buy signal, but that reversal is likely a game changer.   Don't get discouraged, as far as I am concerned, all this means to me is  more time before the move explodes.  I would much rather buy the GDXJ near 36 than 46 anyway.  Here is the chart.

-Jonathan M Mergott

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