Deeper, on Retrace

This update on the miners GDXJ, said we’re close to a bearish divergence if the ETF makes a new high.

This update also said to watch for a new daily high, finishing with this:

“Before anyone gets overly bullish, let’s also keep in mind, the high print at the left of the chart in October of last year, is still below the print discussed in this post. over four years ago (not advice, not a recommendation).”

With today’s price action we could be ticks away from that anticipated new daily high (above the 2/20, 52.91).

Junior Miners, GDXJ, Daily

Note the typical (average) 50%, retrace between blue lines, that was then followed by a deeper 61.8% retrace, from blue to magenta lines.

The last deep retrace to 61.8%, tells us supply is building even though price continues higher.

Best case scenario: Next session opens gap-higher, clearing out stops (buy and sell), creating price action instability (not advice, not a recommendation),

Stay Tuned

Charts by StockCharts

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