Narrow Open & Close Price Action

If you’re not looking for it … you’ll miss it.

Early in today’s session, the Junior Miners GDXJ, posted a new daily low and new weekly low. That helps the downside probabilities (not advice, not a recommendation).

As mentioned in the prior update, when price action penetrates existing lows, there’s a good chance of ‘spring’ action as a result. The market attempts to rally.

Sometimes it’s successful; other times, not.

The attempt to rally after posting new lows is what GDXJ is doing now (as of 2:15 p.m., EST).

Junior Gold Miners GDXJ, Weekly Bar

In the weekly chart below, note how the close, then open, then close and then open again, are to each other.

That ‘narrowness’ signifies either resistance or support, in this case, resistance.

Where the sector closes for the day may an important clue if we’ll continue to the downside.

Next update, the trend-lines.

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