Nuance, In The Retrace

A nuance in price action can have (significant) meaning or be obliterated at the next session.

It’s no secret the dollar, gold, and the miners, are all at extremes.

The dollar is down, gold is stretched in a potential blow-off, and miners (GDXJ), just posted action that may be important (not advice, not a recommendation).

Junior Miners GDXJ, Daily

The last two days have printed a low of 60.13, but this is not the low of Wednesday, the 23rd. That low is 60.05, below the last two day’s lows.

Why is that important?

The last two days have not made new daily lows, so have not created a potential price action reversal (pushing below 60.05, and reversing).

We can also see, today’s bounce is to 23.6%, while last Thursday’s bounce was to 38.2%.

This all may mean something or not.

With the extremes noted at the outset, it may not take long to find out if the distinctions are important (not advice, not a recommendation).

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