The Junior Gold Miners ETF GDXJ has been reflecting actual and relative strength lately compared to the S&P 500. On December 20, the Power of the Pattern noted that GDXJ had hit an important support line and was experiencing a short-term breakout.
Below compares GDXJ to the S&P over the past couple of weeks.
GDXJ has been strong of late, gaining 12% in a little over two weeks. It gained nearly two-thirds of the S&P 500’s 2017 gain in this short time frame!
Below looks at an update on the GDXJ pattern.
After hitting 2-year support at (1), a nice rally in GDXJ has taken place. Today, GDXJ is trying to breakout above a potential resistance line at (2). If it succeeds, it could attract more buyers into the out-of-favor mining sector.
Full Disclosure- Premium and Metals members have been long GDXJ since the 12/120/17. We continue to raise stops to protect capital and gains.