Gold & Silver, Retrace Levels

If GLD and SLV maintain their pre-market, 181.40 for GLD and 23.15 for SLV, they will both open at 38% retrace levels.

They each have attempted to reach these areas two times in October and were rejected.

The last update stated that Junior Mining Index, GDXJ has its own Fibonacci level (38% retrace), in the vicinity of 56.80.

Pre-market activity for GDXJ is around 56.38 … very close.

In Wyckoff terms, yesterday’s trading activity for GDXJ was a Sign of Supply.  The index opened lower then tested (higher) and subsequently moved lower throughout the day into the close.

This firm’s trading action (not a recommendation, not advice) will be to monitor the first two hours of trading (GDXJ) to see if we tap the 38% retrace level and subsequently get hourly reversal bars … or some other indication of reversal.

We’re already short with a combined price of 10.93, in JDST. 

Currently, JDST is pre-market trading at 10.40, which equates to just over a 5% loss on the open position. 

Certainly that’s not desirable but then again, if this is all the market can hit us with, we’re willing to wait it out … although not for too long.

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.
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