The gold-stock indices and ETFs are getting close to reasonable upside targets for the INITIAL rallies from their October-November crash lows. These targets are defined by resistance at 185-190 for the HUI and 77-80 for the XAU. For GDXJ, the upside target for the initial rally mentioned at TSI was $29, which has already been reached. Actually, the resistance that defines the most realistic initial rally target for GDXJ extends from $29 to $31.50.
The main purpose of this brief post is to point out that something has just happened that hasn’t happened since the first half of June. I’m referring to the fact that for the first time in more than 5 months, GDXJ has just achieved 3 consecutive up-days.
This is just another small piece of a big puzzle. It is evidence that the current rebound could evolve into something substantial.