GDXJ Market Vectors Junior Gold Miners ETF – Triangle Pattern

by Olivier on August 9, 2010

Recently gold junior miners have been quite strong. They have started leading the big caps. NEM – Newmont Mining, ABX – Barrick Gold and GG – Goldcorp are basically going nowhere right now. If you compare the GDXJ – Market Vectors Junior Gold Miners ETF with GDX you clearly see GDXJ displaying relative strength. GDX is a big cap gold miner ETF, whereas the GDXJ components are more aggressive juniors in the mid-cap range.

GDXJ - Market Vectors Junior Gold Miners ETF NYSE Triangle Pattern Technical Analysis Price Chart

Up-to-date GDXJ Chart + GDX Chart on my public list.

From a technical perspective GDXJ was threatening to break down. Recent price action shows GDXJ has respected the lower trend line as support. The chart pattern now looks like a triangle (black trend lines). Judging from the pattern, I would expect a break out to the upside. The pattern still needs a bit more time to build more pressure for the impending breakout. My best guess would be to expect some thrusting action in about 2-3 weeks.

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