Monday, September 9, 2013

Watch the GDXJ Junior Gold Miners Here -- Chart

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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