Jeff Cooper: Junior Gold Miners Have Formed a Bull Flag
Gold and the junior gold miners have set a higher low.
Following a down open on Monday, Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) exploded to the top side after triggering an Opening Range Breakout.
Below, see a 10-min GDXJ chart for Friday (June 27) and Monday (June 30).
Click to enlarge
In the process, GDXJ left a large-range outside up day (LROD or Lightning Rod), which should draw the attention of many players today, especially as yesterday's (June 30) rally threatens to offset the large-range downside day on June 24.
The last time GDXJ came out of a Bull Flag in March, it was a fake-out and breakout preceding a seven-week pullback. So, it will be interesting to see what follow-through will bring since the present Bull Flag sets up just below the top rail of a channel that ties to the Spring highs.
One year ago in June, gold and GDXJ set climatic bottoms. As anticipated, 180 degrees later, they set a higher low. So, this June was on the radar for a turn. While it looks like a low came in a few days before the beginning of the month satisfying the cycle, today, July 1, aligns with 45.75 on the Square of 9 Wheel. This was the March high. It will be interesting to observe the behavior if GDXJ kisses the March high this week.
Below, see a daily GDXJ chart.
Click to enlarge
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