Gold To Rally ?

In Position For Upside Test

As long as almost no-one catches on to the Fibonacci time correlations playing out in real time, they’ll continue to have validity.

First, some housekeeping.

The downside action in Junior Miners GDXJ, was a vicious move; from top to bottom (thus far) it dropped over – 17.5%, in just six trading days.

This type of collapse was not really expected as YouTube and ZeroHedge are still filled with the manic bulls.

The short position, JDST-22-04, launched higher as a result.

Taking advantage of the hysteria, that position was closed out today (not advice, not a recommendation).

The expectation is for some type of relief rally in gold and the miners.

Gain on the whole event, which included three entries and three exits was around +24.1%

Moving on to the chart.

Gold (GLD) Daily

We’re at Fibonacci Day 34 and have just slightly penetrated support (blue line).

That puts GLD, in Wyckoff Spring position … although the push below support was not really enough to expect a rally (if it occurs) to go very far.

Today’s action opened up a significant gap and it just so happens, the close of Friday’s bar (April 22nd) is right at 23.6%, retrace.

Stay Tuned

Charts by StockCharts

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.

The Danger Point®, trade mark: No. 6,505,279

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