... and the junior miners will not be an exception too...
If the sector is going down the juniors will drop too.
We have the same indicator divergences:
GDXJ was underperforming in this intermediate cycle.
While GDX almost tagged the 2016 highs GDXJ was not even close to it.
JDST looks to be bullish, making higher lows in the recent weeks. Couple reasons why I think it's on the uptrend:
- Phase one of the China trade deal concluded bringing some stability to the world economy; generally this should reduce the demand for gold, lowering prices and increasing JDST, a gold miner BEAR.
- Gold prices have a very strong resistance around...
Consolidation complete. IHS and bull flag suggesting another leg up. Targeting 17+. Would love to see test of last month's highs above 18. Gold looks like ready for a 1450 test, possibly even as low as 1413.
Pending a breakout of the presented wedge you may be able to correctly time when to bet against gold once more..
I wouldn't be too confident that this pennant wouldn't collapse out the bottom which is why i recommend waiting for the fall wedge to break out a bit, but anywhere by the value box I've drawn could earn you some easy trades.
End of the current JDST trade. Got right up into that 34 day ema and closed right below. Great 30% swing here. No solid break or close above so sell to take profits best idea. Love the gold plays on the 3x lev's.
Looking at this Inverse ETF in Gold I see potential weakness which is enough for me to want to hop in a short and hold it until it's in profit.
Layering is key for these set ups and also knowing that the div isn't valid yet but I'm betting RSI will retract.