In the chart below I highlighted that the Junior gold stock etf (GDXJ) had broken out to the upside (see post here) above resistance, which should be a good sign for those owing GDXJ and GDX. Shared that a bullish ascending triangle was in place for GDX, which should be a quality sign, especially on a resistance break.
The Junior gold stocks have been a real mint to own of late! So how is GDX doing recently? Can you say…”breakout of a 3-year resistance line?!?!?”
GDX is up almost 10% since the top chart, again reflecting why we want to follow breaks of resistance! For those that have owned GDX before the breakout, keep stops in the 5-7% range. If you don’t own GDX, be a buyer right now with a stop 6% below current prices.
P.S. Gotta love Silver! Hi-Yo-Silver and away we go! Silver created a similar ascending triangle and is now up over 22% since the breakout. (see post here). See update on a short-term breakout of a flag pattern. (see post here).
Do keep in mind, that silver broke a 30-YEAR Fibonacci resistance level recently!!! 30 YEARS!
I suggested in the chart below to be a buyer on a breakout because the next FIB level was over 25% HIGHER! (see post here)