Gold Miners GDXJ, To Close The Gap ?
The magenta arrow and bar show pre-market action in Junior Miners GDXJ, about 25-minutes before the open.
Fibonacci retrace levels as noted.
The zoom chart shows a gap that action may be trying to fill and then? Is there something more?
Sated earlier, a 23.6%, retrace is rare and 38.2%, more common.
The market looks to open higher.
If so, typical behavior is to come down for a test and then continue upward if that’s the overriding direction.
If the expected test fails, action may continue lower.
Once again, we’re at the danger point. The action itself defines the trading response.
Friday saw a partial exit of the short JDST-22-01, position in anticipation of higher prices (not advice not a recommendation)
Today may see the rest of the exit if the pivot higher is confirmed (typically within the first hour).
The fact pre-market trading is subdued with just (so far) a half-point or about 1.0% gain, still suggests weakness.
We can see price action penetrated support (bottom blue line) on the chart and so GDXJ, is in ‘spring position’. However, thus far that spring appears to be weak.
There’s a lot going on at this juncture.
JDST-22-01, Position Table to be updated and posted later.
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