By: Jeff Cooper
Hit and Run Morning Stock Report: December 28, 2022
Need help? Check out the Hit and Run Success Guide.
GLD Inflection Point
Yesterday, we noted that GDXJ is testing resistance at the 37.50 region for a 3rd time.
Remember, 37.50 is a square-out, being 180 degrees from the September 25.80 low.
As well, a GDXJ below shows a small Megaphone Top formation.
As a result, we rang the cash register on 2/3 of our GDXJ long swing.
My weekly GLD is still on a buy signal, but price is running into resistance from the red trend line.
That line was broken and price is backtesting it from below.
We have also reached the ape of the two trend lines based on the lower rail of a declining trend channel.
The entire picture takes on potentially greater significance when viewed from the context of what may be a big double top from the 2020 and 2022 peaks.
A daily GLD below confirms what I noticed in the weekly chart.
The solid trend line in the daily below is based on its being a “most hits” trend line -- in other words, there are more direct price hits on this price angle than any other price angle.
That means validity to me.
This line is paralleled off the March high and price has now come up to the line.
In addition, notice the 3 drives to the recent high, and that there is very obvious price divergence at each successive peak from the starting point of the red trend line.
Cycles suggested GLD and the metals may run into year-end. They have.
There is a shot for them to extend into March/April, but a correction may be on deck.
Clearing and holding over current levels on both GLD and GDXJ opens the door to higher prices.