By: Jeff Cooper
Hit and Run Trading Bonus Report - January 30, 2024
Potential Weekly GDXJ Triangle Pendulum Buy Setup
GDXJ left a large range outside down day last Wednesday, January 16th.
So far, it has seen no downside follow thru suggesting that may have been a washout.
Clearing and sustaining above that bar’s high at 35.16 triggers a little buy signal opening the door to Phil D Gap around 36.20 which ties to a Bowtie of the 50/200 day moving averages.
That’s not a big deal…it’s 1 point…but every big move starts with a small move.
Clearing the congestion at the 36.20 region opens the door to around 37. (red horizontal line).
Above that GDXJ can push to 38.25, which is a Ghost Line from the November low.
Breakage above the Ghost Line opens door to the prior swing high at 39.50.
Notice there is a larger Ghost Line (brown) from the October 2023 low right in the middle of the congestion zone just above.
With so many pivots just above current levels, the presumption is accelerated momentum if they are cleared.
What’s interesting is that 33.25 (the recent low) is 90 degrees down from the 39.50 December high.
Consequently if triggered, this upside cascade setup has potential to the 39.50 region
Pulling back the lens to look at the weeklies shows a Tops Line from the April 2022 high resides at 38.50.
In sum, a weekly Rule of 4 Breakouts and as well as a Triangle Pendulum buy is triggered above 38.50.