Wednesday, June 11, 2014

Let's really really zoom in on GDX and GDXJ

Here are some megazoomed candle charts. First GDX:

May 27 and 28 were the dump, but that happened because of an OpEx smackdown in the gold price.

Since the 28th, there have been nine days building an ostensible "bear flag". The downward trend in volume was reversed yesterday, printing a solid white candle that broke through EMA(16) and the Bollinger mean. That looks good.

But in addition, for every red candle in those nine days, there is a white candle that's larger. So buying has swamped out selling.

So I dunno if it's a bear flag. GDX might go on a run for a while.

Here's GDXJ:

The same applies, except GDXJ broke through its EMA(16) and Bollinger mean on Friday, and since then has flown up and through its SMA(50) (which it lost back in March) on volume equaling the second day of selling back on the 28th.

So darn it, GDXJ sure looks good, and GDX looks good. Or at least they look less horrid than an honest, reality-based goldbug would expect them to look.

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