Hit & Run Gold

Yesterday GDXJ pulled back into the open gap from the July 27 high day for the move.

As well, GDXJ tested its 50 hour for the first time since breaking out on July 17.

This offered a two pronged bullish setup as the first test of the 50 hour or 50 day is usually (not always) a good risk to reward buying opportunity.

This is especially true if the item is in a strong uptrend.

GDXJ is in a runaway uptrend — clearly it is in a powerful 3rd wave.

GDXJ didn’t explode initially off the pullback to its 50 hour. It coiled in what I refer to as a Crouching Tiger with multiple inside bars.

These contractions often see price spring back to the topside.

I gave an audible to take GDXJ long on a swing on the Hit & Run private Twitter feed.

Members were filled at 60.07. We locked in a 2.22 gain on half the position within an hour and trailed a breakeven stop on the back half in keeping with our Hit & Run methodology of selling half and working the balance.

In the very short term picture, Monday’s rip may have been an Exhaustion Gap.

However, as shown earlier this week, GDXJ has an outstanding projection to 70-71.

Ultimately it should play catchup with gold and challenge its all-time highs in the 180 region.

Pos GDXJ

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