Gold jumps quickly today, up around $30

Well, very unexpected. I was expecting the bears to loose the battle at $1300 today and have gold plummet down towards its next zone of support. But...lookey what we have here.

This will be interesting to see how it behaves if/when it gets to its previous support zone at 1348. In normal conditions one may expect it to act as a strong point of resistance, but given the fickle nature upon which it broke it (lots dumped into the night market, down through the zone over the course of a minute) I would not be delighted, and not overly surprised to see it go through without a lot of trouble. It already tried once so far, and was pushed back down pretty quick. I'll be watching for another attack and paying close attention to how it behaves.


Further to that, if it can manage, it sets the stage for technicals of greater significance. Recall the intermediate trendline which was broken upon gold last major decent. Basically, if gold can hold this level, technicals become good decent again.

Checking in on the GDXJ

Its definitely going back down towards its support zone. Given, it didn't require any excellent foresight to guess that it was going down, but still. I do think that this level is of decent, albeit not grand, strength but we shall see. Like I said in my last post on this topic, I think its good for another bounce. Gold seems to be fighting the $1300 level over the last couple of days and the GDXJ is falling towards the line fairly quickly.

After that though, I won't be holding out for a whole lot. The next support for gold is down at $1250 and it doesn't appear to me as a particularly strong one.

GDXJ

I don't normally watch the GDXJ because its performed pretty poorly. That being said, I've started watching a few of the indexes and ETFs more closely as we near the "bottom". I created a simple trading channel during the end of June to watch the action for GDXJ... has been pretty true since then, with a minor break in early July (note it briefly played the role of the resistance). I have a feeling that after this third attack, which broke on low volume, the next movement will likely be dictated by golds ability to stay above $1400 then any technical trading.


Note how upon breaking the support level it retested it before breaking through and staying fairly true to the channel.