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GDX and GDXJ Targets


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Im going to use the GDX and GDXJ as a proxy for the rest of the PM stock indexes which are very similar to these two. Last Wednesday we looked at the short term daily charts to the longer term weekly charts to see how things were setting in the PM complex.

We first looked at the short term daily chart which was showing the H&S top and the smaller blue consolidation pattern that was building out below the neckline. The smaller blue patterns were kind of morphing, but were giving us a hint of what they would eventually look like when they competed.

Below is the short term daily chart for the GDX which shows the H&S top with the completed bearish rising flag. The breakout was a little sloppy, but today we are getting some follow through to the downside.

This short term daily chart for the GDXJ shows it broke out below the bottom rail of its bearish falling wedge this morning with a breakout gap.

Now lets look at the longer term daily chart for the GDX which shows the one year triangle consolidation pattern with the breakout now visible. The chances are high that the triangle consolidation pattern will be a halfway pattern to the downside with a price objective to the 14.88 area as shown by the blue arrows.

Below is the long term daily chart for the GDXJ which shows the H&S top on the short term daily chart as the 4th reversal point in its one year triangle consolidation pattern. The impulse measured move would be down to the 20.75 area as shown by the blue arrows.

This four year weekly chart for the GDX puts the triangle in perspective as a possible halfway pattern to the downside. Its still possible we could see a backtest to the underside of the bottom rail of the triangle which would come into play around the 22.75 area.

Until the bulls can take out the top rail of the downtrend channel the bears are still in charge.

This short term weekly chart for the GDXJ puts its one year triangle in perspective as a possible halfway pattern to the downside.

This long term weekly chart shows how the triangle fits into the very big picture. Again all the bulls need to do is take out the top rail of the bear market downtrend channel and all will be right with the world again. As you can see they have tried three times in the last year and a half, but so far havent been able to do it.



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Rambus Chartology started out as primarily a Precious Metals Technical Analysis site and has now broadened the perspective to include all important markets .  Here you can watch Rambus follow the markets on a daily / hourly basis and learn a great deal of hands on Chartology from Rambus Tutorials and Question and Answers. Our  Motto: Give a man a chart and he may prosper for a day, teach a man to chart and he will prosper for a lifetime.

Chartology is the Unique Blend of Technical Chart Pattern Identification and Market Psychology.  Developed by Rambus during the Tech Mania of the late 1990s, his early training came the old fashioned way…reading Edwards and McGee’s Bible of Technical Analysis and spending years with a sharp pencil graph paper and ruler refining his skills and accuracy. 

In early 2000, Rambus exited his long tech positions and searched for another emerging bull market which he found in the budding precious metals bull. Many members are staunch goldbugs who have seen Rambus in action from the 2007 to 2008 period … and now at Rambus Chartology since early 2012. Rambus traded the PM Bull Market from 2002 to 2008. Then he warned of a severe correction in late 2008 . And Again his charts predicted the present protracted PM bear market where he has been trading from the short side since early 2012.

To follow Rambus' unique unbiased chart work and to participate in the chartology form with questions and answers, and learn the art and science and mindset of a pro trader you may join us at Rambus Chartology.. 

You will find Rambus to be a calm, humble, down home country tutor with an incredible repertoire of all the TA based protocols tempered with his own 'one-of-a-kind' style'. Simply put he wants to keep his subscribers on the right side of these crazy volatile and downright dangerous markets. 

 

 

Contributing author since 10/16/2017 

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