Short GDXJ
Updated
Shorting GDXJ from $37.17 with a target of $27.86 to $30.00.
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I believe that with markets potential to fall we will likely see another round of weakness, even if briefly, for the miners and gold in general. The potential for more profit taking or selling for margin have been greatly increased with the rapid rise in GDXJ over the past week and with markets at approximately 50% retracement levels from the highs respectively. If you feel unsure about shorting gold in this bull market you are smart, this is for risk oriented traders. If you are not going to short you may want to take profits for the time being in hopes of buying in lower. I would not look buy back in until either lower prices or up trend is certified by price action as intact (potentially even breaking past prior high). One can short directly, via puts, or even through JDST. Happy trading!
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WEEKLY AND DAILY RSI DIVERGENCE (BEARISH)
WEEKLY CANDLE'S NOT LOOKING GREAT
DAILY CANDLE HAS GAPPED BELOW THE 200 EMA CONFIRMING A BEARISH BIAS
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I believe that with markets potential to fall we will likely see another round of weakness, even if briefly, for the miners and gold in general. The potential for more profit taking or selling for margin have been greatly increased with the rapid rise in GDXJ over the past week and with markets at approximately 50% retracement levels from the highs respectively. If you feel unsure about shorting gold in this bull market you are smart, this is for risk oriented traders. If you are not going to short you may want to take profits for the time being in hopes of buying in lower. I would not look buy back in until either lower prices or up trend is certified by price action as intact (potentially even breaking past prior high). One can short directly, via puts, or even through JDST. Happy trading!
----------------
WEEKLY AND DAILY RSI DIVERGENCE (BEARISH)
WEEKLY CANDLE'S NOT LOOKING GREAT
DAILY CANDLE HAS GAPPED BELOW THE 200 EMA CONFIRMING A BEARISH BIAS
Trade active
Stop was hit but I have re-entered this trade. I have all the details on my blog including charts as this will not allow me to post pictures. Here is the link:economicruminations.com/2020/04/golden-opportunity.html
Here is snippet:
If you do sell I would keep eyes on points of support in the gold price and be open to the possibility of seeing $1600, $1530, $1450, or even $1350. This could mean GDX to as low as $25 and GDXJ to as low as around $30. These are not hard numbers or recommendations to buy / sell at these points. Do your due diligence and make your own decisions. I am just pointing out that, as we are used to with gold equities, this may not be "it"
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I did not type this in the blog, there is a chart, but here are the key support levels I will be evaluating when plotting re-entry.
If $43 is broken to the upside I close this trade and look for a re-test to get back in.
There is Medium Term support around $36 (also about the 200 SMA on the 4h, daily, and weekly).
Long Term Support at $33 (also a 38.2% retracement from the March low to current high, 200 SMA on 3 day).
Long Term Support at $28.50 (also a 61% retracement from March low to current high and hard support from 2018).
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