GDXJ LONG! Gold Miners bouncing off support. Entry = $43.55.

Entered at GREAT price right up against Major Support. Usually I post pics with MACD. Today I am not. Showing this chart as prime example of how Price Action dictates trade. Only using a simple system of Trend Lines and Horizontal support and resistance lines and some observation of candle patterns and you have all you need to trade. Another trade BUY signal will be once we break above the recent high of Oct 25, 2021 @ $45.75.

Entry = $43.55
SL = $41.89
Target Price = $54.86
R = 6.81

Trade active:

Price breaking higher yesterday and today. We are now at overhead resistance which also happens to be a Cup and Handle formation. It seems that many charts look like this Cup and Handle formation with some having broken out today. Upside TP of the Cup and Handle formation (IF we break it) = $53.16 which is not too far off my TP of $54.86 I originally posted above. IF we break above $45.24 level then we should expect some heavy resistance or a pause at about the $50 level where TL resistance and 2 different Horizontal resistance zones lay. See the 3D chart posted below.

Trade active:

Broke above resistance of $45.24 today!! Cup and Handle TP in play now. We will see if the resistance level now acts as support as I would expect some testing of the $45.24 area before breaking higher.

Trade active:

POP!!. Nice BIG GAINS today because I got in at a good price. Lets see where we end up.

Comment:

LOL,...well that changed quickly. Still well into profit despite the pullback in all markets late in the day. Will look for a BUY opportunity to ADD to position at support as the market pulls back. Recently, pullbacks have been shallow and quick but with the recent break above double tops all over the markets in all sectors leading to new ATH in every market we have yet to test the broken resistance as now established support. So I expect that to happen. I will be placing BUY orders at or very near those breakout support zones.

Trade active:

Trade is doing very well. We STILL have not had a significant Pullback. Price is at upper 25% of the channel and approaching multiple resistance zones.

This is NOT the place to ADD to Positions. This is the place to expect a pullback or pause. Will wait several more days and see what candles print.

NO Changes.

Trade active:

Trade still doing very well. Today price paused a bit just above support as its retested again. Gold continues to test overhead resistance. So if GOLD breaks higher then I would expect GDXJ to continue higher and if USD continues higher and/or GOLD drops then GDXJ will likely retrace.

When I have several trades get stopped out at the same time (not this trade but others I have posted) then that has often been turning points in the market as people start to rotate out of one sector and into others. These are times to remain a bit more neutral in CASH and not over trade.

Patience to see what opportunity the market gives us.

Trade active:

ADD to Position BUY Limit order placed @ $45.68.

Comment:

Daily Price LOW today was $45.89. BUY Limit Order hopefully will fill early next week.

Trade active:

ADDED to Position at $45.68 today. Currently that portion is at a loss but remainder of trade is profitable.

Comment:

At TL Support and EMA 39. I am expecting a bounce soon.

Comment:

Dropped further today. But GOLD is a 2 support lines between $1770 - $1780 I woud expect a bounce. So doubt much downside left to Gold and GDXJ before we break to resume higher prices soon.

Comment:

GDXJ dropped today wth market selloff despite Gold going higher. We broke TL support but MACD is still above ZERO. I may have been a bit too aggressive and early on this trade.

Will see what happens next few trading days. I try not to make too much of a change on my positions around holidays because usually the trading volume is less and when people return t work on MOnday normal trading activity resumes. I have been shaken out of plenty of good trades around holidays.

So for now will hold steady and reevaluate after next few trading days.

Comment:

Slight bounce today as we are at support. $USD is testing MAJOR overhead resistance and I expect it to fall or at best consolidate for a while. So if $USD falls I would expect precious metals to do well. Next few days will be important.

Comment:

Today was a bad day for nearly ALL markets. we are at support on most of my trades now. I think I will be raising stops to just under current price levels and like scale ot of all LONG positions before the end of the week and see what shakes out. Currently the entire market looks to favor a bearish bias. Not saying we crash here just think we pull back a bit.

I suspect that by the end of this week I will be largely in cash or slightly SHORT on all my positions and will likely get out of this one.

Trade closed manually:

Trade closed. Getting back to trading from a position of strength by stepping aside and remaining in CASH. Will reevaluate for new entries on several trades. Today we broke TL support and the market as a whole looks to be wanting to retrace a bit.

When the market starts to trigger several SL and breaking TL support on multiple trades it is NOT an indication my trading is flawed. It IS an indication that the market is changing. Today I got into CASH otherwise I have one SHORT position trade still on.

Exited this trade @ $40.53 today