Are Diamonds A Junior Miner’s Best Friend?
GDXJ is going to break one way or the other pretty soon. It’s in a Diamond, which is a consolidation pattern, usually thought to have no bias between trend continuation (in this case up) or reversal. If it ends up breaking down it will have been a volatile reversal pattern that whipsawed everybody up and down for a month, making sure every last desperado who felt gold stocks were running away from them got aboard.
I won’t buy GDXJ because I pick my own juniors, but I will buy GDX because I like its mix of seniors. I know it is not popular given the momo of late, but why not plot out some downside support targets and be patient; at least until this pattern betrays its intentions?
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Seems like GDX and GDXJ are having a lot of trouble breaking through resistance. I won't buy GDXJ until it can break and hold the $29 level. Some of the individual juniors like Brazil Resources and Callinex look promising so long as gold moves higher.
Yes, and the individual stocks will move at their own pace and direction. 1st support for GDXJ would be around the 50 day averages. Can't rule out the 200 though, depending on what lay ahead.