09 Nov 2016 - D-day that Donald got elected as US President.
Gold spiked up to 1334 before retracing back all its gains currently.
GDXJ gapped up at opening, $42 and retraced back to $40ish level.
It is now back to the bottom blue line and there may be a good chance for consolidation either around the bottom blue or middle pink line.
Good risk/reward trade...
GDXJ hit resistance at the gap $42-$43 and has been consolidating for the past 2 weeks.
Orange trend-lines show the bigger consolidation pattern.
Pink trend-lines show the smaller consolidation pattern.
Both are in a potential bull flag formation.
Accumulate at the bottom pink trendline for better risk/reward.
Short term target is 44.
Oil has broken down from the bottom blue trendline and is oversold.
A retracement to the top blue line before resuming the fall is possible.
Long close to the ascending purple trendline at sub 47ish.
Target above $48.
Stop-loss below $46.
Previous setup on Oct 01 to long oil between $46 - $46.50 did not go live as retracement was not seen.
WTI Crude has broken out from the green trendline and initial target from the failed descending triangle was almost met(day high at $51.94) on Oct 19.
Volume has been coming down for the past week thus not many buyers are chasing this up move.
A retracement...
Failed descending triangle. Not chasing this up move as Oil looks oversold on the 5/15/60/120 minute chart. Will long when blue line is re-tested ideally $46-46.50. Min target $52. Cut loss $45.
Technically Oil is still bullish as long as price is above the bottom green line.
1) Divergence in the 4hr RSI and MACD crossing over.
2) Price has touched the bottom of the downward trendline on Oct 06.
3) Support at 38.2% Fibo of the rally from Jan 2016 to Aug 2016
4) May see another downleg to sub 37 due to spiking USD but risk/reward is good for a bounce to 42
Risk/reward ratio is 3:1
