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