By: Jeff Cooper
Hit and Run Morning Stock Report: November 7th, 2022
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What You Need To Know About GDXJ
On Friday the precious metals complex exploded with GDXJ ripping 3 points, over 10%, to 31.24.
On Monday Hit and Run wrote the following about GDXJ in a report, “
Using GDXJ as a proxy for the metals, we see an inverse Head & Shoulders pattern.
The Neckline is 32.30. Above the Neckline gives a projection to the 38 region.
This ties to the breakdown zone from June…with the overhead 200 day moving average at 37.
As well there is a declining 3 point trend line that ties to 30.
A move above 30 triggers a Rule of 4 Breakout.
Consequently, an upside Cascade pattern is on the table.
If GDXJ drives through 30, there is a strong likelihood it will follow through knifing through 32.30 perpetuating upside acceleration.