I'm watching this chart of the GDXJ, a basket of junior gold
miners ...
We saw gold and miners
bungee-jump higher on Friday when jobs news disappointed and so investors
ratcheted back their estimations of Fed tightening. Today, the GDXJ is
outperforming both SIL (silver miners) and the GDX (large-cap gold miners).
Still, it is in a no-man's land where it could break either way. And the tightening
Bollinger bands are our clue that a breakout one way or the other is coming
soon.
If it breaks to the downside, it could go back to support at $37. If it breaks to the upside, my target would be $62. Momentum seems to favor the bulls. Watch for the break. Do your own due diligence -- this is not an official recommendation.
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