Gold Miners after Trump's win09 Nov 2016 - D-day that Donald got elected as US President.
Gold spiked up to 1334 before retracing back all its gains currently.
GDXJ gapped up at opening, $42 and retraced back to $40ish level.
It is now back to the bottom blue line and there may be a good chance for consolidation either around the bottom blue or middle pink line.
Good risk/reward trade to buy at $40 and below.
Cut loss below $39.50.
Target $44, top of the orange channel.
GDXJ trade ideas
Gold Miners - Mid to long term setupGDXJ hit resistance at the gap $42-$43 and has been consolidating for the past 2 weeks.
Orange trend-lines show the bigger consolidation pattern.
Pink trend-lines show the smaller consolidation pattern.
Both are in a potential bull flag formation.
Accumulate at the bottom pink trendline for better risk/reward.
Short term target is 44.
Long Gold Miners1) Divergence in the 4hr RSI and MACD crossing over.
2) Price has touched the bottom of the downward trendline on Oct 06.
3) Support at 38.2% Fibo of the rally from Jan 2016 to Aug 2016
4) May see another downleg to sub 37 due to spiking USD but risk/reward is good for a bounce to 42
Risk/reward ratio is 3:1
GDXJ - Ending Diagonal In ProcessI'm seeing wave C possibly shaping up as an ending diagonal to complete wave 2 of the larger degree correction.
If the price movement follows the blue count on the chart, we should be going down in 3 waves a-b-c to form a bottom around the 50% retracement of the larger impulsive wave 1 high of 52.50, potentially going a bit lower.
This would be an excellent opportunity to catch the following impulsive wave 3 up which will very likely take the GDXJ all the way up to 100 and above.
SOLD GDXJ SEPT 16TH 45 PUT.... for a .67 ($67)/contract credit.
This and $GDX are currently probably the highest implied volatility exchange-traded funds, so I'm just selling a little premium here without taking on the upside risk that doing a strangle would entail.
That being said, I'm fairly sure I don't want to be put GDXJ at 45 (lower would be preferred for a long position), so I will watch it and roll down and out to an expiry in which I can get a credit for the roll in the event price poses a threat to the short put ... .
GDXJ - Selling into the breakoutGold price was pulled up on low volume Friday after the NFP data.
A strong NFP data should have caused a steep decline in gold but I think nobody was prepeared for that at Smartmoney.
So what can the banks do in this case? Bullion banks are starting to pull up gold price in the low volume Friday afternoon session. In the gold bull market - and miners bull market - traders get used to buy the dip so they think the rally will last forever. But not this late in the daily cycle and so much stressed above the 200 EMA on the daily chart. Miners are due for a correction and I think we have seen the top in GDXJ and GDX yesterday.
The artificial gold rally on Friday gave the chance to miners to rally higher and banks could sell into this breakout.
I'M looking forward to see a GAP down open in the miners on Monday.
RSI heavlily overbought both GDX and GDXJI might take a risk and buy some JDUST &/or DUST. Gold is still strong bullish so this trade is very risky and I will make final decision when I see gold direction. SL & TP will be determined according to Support and resistance zones. I woild like GDX & GDXJ to go a bit higher in overbought situation and then enter my short.
GDXJSince the Gold obviously started a corrective move down it makes sense to load up with ETF which has also started its corrective move. A lot of supports on the way down present a buying oportunities. My bet would be bellow the red line, which is somewhere between 50% and 61 % fibo lines.
How to trade
1. Wait for a bounce first and then load up
2. If it closes lower than 61 % fibo for 2 consecutive times, negate the trade.
3. Use weekly ATR reading for stops
Regards