Here’s your trade on $GDXJ – January 4, 2023
GDXJ GLD GDX
The market kind of sucks, but not everything does. Gold ( NYSEARCA: GDXJ ) is one of those things that is working pretty well.
Now, if you look at GLD ( NYSEARCA: GLD ), fine but it is really, really gappy here. That is just the nature of an ETF that tracks a metal. This is pretty gappy, but this GDXJ ( NYSEARCA: GDXJ ), which are the small-cap gold miners, is working really well. It would have been nice to have gotten in yesterday but I can’t pretend that I saw it, though, I will tell you, several of our members did.
I’ve been out, I just really got back yesterday and I noticed several people were in gold. I am not sure if they were in GDXJ ( NYSEARCA: GDXJ ), they might have just been in the regular GDX ( NYSEARCA: GDX ), but the charts look pretty much the same. Some of these guys got in on it, I didn’t but I did today, but I still think this is pretty early.
I am just looking at GDXJ ( NYSEARCA: GDXJ ) now. If you are buying this thing now you can see, 2-days, really nice moves higher here. Today was above-average volume on a breakout, a really, really good strong close. This thing works really all across the board.
The weekly chart, you could say, Oh well, this is still in a downtrend. Okay fine, I am not saying this goes up to $60.00. But I am saying this, on a weekly chart you can see a series like here’s a triple bottom, right? Well, it turns out that didn’t work out, so this has traded lower. A lower low, then a lower low here, so this is all bad stuff.
But now we are starting to get these higher prices. They are above the red line here, which is the 10-week or 50-day moving average. You could almost say, Hey look, here’s an inverse head and shoulder pattern. It’s the right shoulder here that you are really kind of guessing, you are kind of stretching the rules of imagination if you are going to look at this as a right shoulder. But still, the dynamic remains. I think we’ve got a really strong reversal pattern here and now this is coming out of a really nice squeeze.
I think you could buy this thing here and then be putting a stop, give it an 8 or 9 percent stop, or something like that. I don’t think you will have to worry about it too much, I think this is going higher but we’ll see. I put this on our Active Trade List along with a few others.
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