Better Sit Down For This Gold Target

For four months, GDXJ has been playing toe-sies with a 20.83 target that was put in play back in August. While there is always the possibility that this popular junior mining-stock vehicle is about to turn higher, the weight of the visual evidence suggests lower prices are more likely. If so, a 16.54 (!) target would be in play, calculated by sliding the point ‘A’ high of the pattern up to the peak labeled A2 in the chart. The resulting Hidden Pivot at D2, midway between p and D, would be a logical minimum downside objective if 20.83 is decisively breached. It’s hard to imagine what factors might account for such an extreme drop, but you don’t have to be a chartist to see the visual logic of it. As a possible alternative, it would take an explosive up-thrust exceeding the 54.56 peak from August 2013 to break the spell of the bear market that has pummeled gold stocks for more than four tears.

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