The Head and Shoulders Top in GDXJ - Can You See It?

By: Jon Kopel | Wed, Jul 30, 2014
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Yes, GDXJ has a head and shoulders top.

GDXJ Market Vectors Junior Gold Miners NYSE + BATS
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It is unbalanced with the right shoulder being higher than the left shoulder. I think that is because of the strength of the gold juniors. Of course this is positive for the whole gold sector as the juniors are the leader. Nonetheless we are in for a drop to 38 for GDXJ. Not only is there major support there, but this is a fibonacci 61.8% retracement of the rally from late May to July 10. The head is at 46.5 on July 10. The left shoulder is 43 (43.5) on June 19. The right shoulder was formed yesterday at 44.

Of course this head and shoulder formation can be seen on GDX as well.

My target for GDX is 24-24.5. The good thing with GDX is that it will fill the gap on June 19. My timing for the short term bottom is August 8 or 12.

After this drop I am very bullish on GDXJ.
The basis for this analysis is vedic astrology.

Another important topic is if we make money in the gold sector is if we will get to keep it. The government not only wants to impose a police state (http://www.paulcraigroberts.org/2014/07/05/tyranny-resurrected-john-whitehead/) but it wants to steal our money in any way possible.

 


 

Author: Jon Kopel

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