Junior gold miners have been consolidating in a tight flag above a major breakout level (around $50) that represented a price ceiling since 2013.
Long term ranges precede high probability big winners.
There could be a deeper shake out in play, but I ultimately expect prices to be supported above the 200 day moving average which currently sits at ~$48 and eventually breakout toward $70 per share.
The question for a trader/manager is not whether the price of GDXJ will trade higher or not. It's a question of opportunity cost. Do I hold the asset while it potentially does nothing and continues consolidating while other markets do well? Or do I wait for a proper signal and pay a premium? I'd rather wait for a strong signal and pay up.
FYI: I used the 7D time frame just to fit everything on the screen
Long term ranges precede high probability big winners.
There could be a deeper shake out in play, but I ultimately expect prices to be supported above the 200 day moving average which currently sits at ~$48 and eventually breakout toward $70 per share.
The question for a trader/manager is not whether the price of GDXJ will trade higher or not. It's a question of opportunity cost. Do I hold the asset while it potentially does nothing and continues consolidating while other markets do well? Or do I wait for a proper signal and pay a premium? I'd rather wait for a strong signal and pay up.
FYI: I used the 7D time frame just to fit everything on the screen
Note
Yesterday GDCJ ripped through stops and had a significant breakdown. With price now below the key breakout level and the 200 day average, I wouldn't even think about buying until we see a reversal on a *weekly* basis back above $50. Note
Now back above the 200dma after an undercut of the 200d: I went long gold futures at 1780Note
Solid rebound off the 200d and a probable bottom in place. I remain long gold futures and have added this morning with options on gold futures (GC December 28 at $1815 per oz). I do not have a position in GDXJ but I would if it wasn't for my preference in holding futures.
Notice price has now gotten above the key $50 level as well.
Note
Precious metals investors.. this is the real deal. 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.