The Juniors have quietly built a nice base.
After setting a potential base top, the junior miners are testing the ma's on declining volume. Last week's bar shows a decent looking tail. The last 2 month's pullback might also suggest a backtest of a June Breakout.
A closer look at the Daily chart reveals a wedge breakout on Friday. The Indy's look favorable, as do the the ma's. A move up to 45-46 would set a nice looking Cup & Handle opportunity.
Zooming in on the Hourly chart shows the potential for another base with the base. The Indy's are a bit extended short term which may prevent the Juniors from a breakout here. A further test of the base top back to the ma's may be in order prior to a breakout.
GDXJ is a long under 42. A stop at 40 is a little loose, but for the patient holder the weekly target is 53 offering a decent return. The shorter term target is 45-46.
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