by Jordan Roy-Byrne, CMT
The Daily Gold
What a move in the gold stocks! The sector has refused to correct for more than a few days at a time. All weakness has been bought as a wall of worry has been built and the sector emerges from a historic low that could be on par with the 1942 low in the stock market. I thought the Federal Reserve statement or reaction to it (along with the market’s overbought condition) might cause the sector to correct this week. Instead, GDX and GDXJ powered higher and have gained roughly 13% for the week.
The weekly candle chart (below) shows both GDXJ and GDX are in breakout mode. GDXJ moved beyond previous resistance at $32-$33 and has upside targets at $43-$45 and even $50. Meanwhile, GDX has surpassed resistance at $22-$23 and now has upside to $27-$28 and $30.