Junior Gold Miners ETF in Bullish Coiling Formation
Commodities / Gold & Silver Stocks Apr 05, 2011 - 02:59 PM GMTBy: Mike_Paulenoff
All of the action in the Market Vectors Junior Gold Miners ETF (GDXJ) since the March 7 high at 41.00 exhibits a series of higher lows juxtaposed against lower highs. In other words, the pattern is a contracting consolidation or coil formation.
As long as the very near-term series of higher lows remains intact by prices remaining above 38.60 on any weakness, the integrity of the pattern will remain intact and continue to put upward pressure on key resistance at 39.80-40.20.
A hurdle of 40.20 should trigger upside continuation that revisits 41.00 quickly. Conversely, a break below 38.60 should trigger a retest of the prior key pivot low at 37.69.
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By Mike Paulenoff
Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.
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