Unfortunately for the bulls, GDXJ didn’t get that gap up on Monday. We needed to see that bullish action to confirm that the move down was a retracement and not something deeper. All hope is not lost, but the prospects of breaking out to new highs on this move is unlikely. Gold and silver got hit today as well.
The only positive I can take from today’s chart is that the 200 day is still flat/ to up, but will be cresting unless price can move back up. It’s now resistance and any move up to it will be likely sold.
GDX did make it on the Wall Street Journals BOW list and is up after hours, but again, under the 200 day it remains just a bounce. Certainly not conditions I would recommend for any leveraged product.
On the bright side, it does look like GDXJ is due for a bounce as it is oversold and the MFI (money flow) is the lowest it’s been all year.
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