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Is a Gold Correction on the Table?


As the daily GDXJ below for 2016 shows,  there have been 3 tests/undercuts of the 20 day line this year.

Each has perpetuated a continuation in keeping with the idea of pullbacks to a rising 20 day as a  Holy Grail Buy signal.

When the 20 day m.a. was regained in early June, a new high followed.

Ditto late July.

50 is a key level squaring out the low of the year.

GDXJ broke out in the first week of February and this week is 180 degrees/days opposite early Feb.

Yesterday, GDXJ gapped up setting an opening high and tailed off a tad, leaving a little Gilligan sell signal.

Markets often play out in 3's and GDXJ shows 3 tests which perpetuated 3 drives to new highs.

So theoretically, a stab back below the prior swing high from July 13 at the key 50 level probably indicates a correction is on the table.
P.S. T3's Doug Robertson is hosting a free options trading webinar tomorrow after the close. Click here for more information.