GDXJ: Is Gold Ready to Rock?

GDXJ tested the key 40 level on the open and is rebounding to its overhead 50 period on the hourly.

As you know, 39.50 to 40 represents 180 degrees up from the 27.50 December low.

As walked through in this morning's Morning Call Express video it will be important to see whether the breakout over 40 signals a move to the next decrement of 90 degrees up which is 46 or whether the move to 43 was a short term Pinocchio/buying climax that indicates a reaction and some downside work/consolidation is ahead.

At potential turning points, there are often a slew of technical cross currents in time and price.

This is the nature of the Talented Mr. Market's diabolical purpose to have as few players on his train when he leaves the station.

This is what happened in GDXJ in early November when it faked higher and turned down after the election.

The 3 Week Chart is pointing up in GDXJ.

However the monthly is now in the Minus Two/Plus One Sell Position.

The daily went into the Plus One/Minus Two buy position on this morning's gap down.

At the same time, we are 90 days/degrees from the important early November turning point.

This is often how the double helix of the daily/weekly/monthly timeframes bind price: within THE TREND, there is a  primary trend and a secondary trend which wind their way from the bottom left corner of a chart to the upper right corner of a chart…or vice versa.

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