GDXJ closes lower for the 3rd day in a row
VanEck Vectors Junior Gold Miners ETF (GDXJ) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, GDXJ ended the week 1.11% higher at 46.43 after losing $0.24 (-0.51%) today on low volume ahead of tomorrow's Memorial Day market holiday. Trading $0.73 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Wednesday, GDXJ lost -2.69% on the following trading day. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (GDXJ as at May 22, 2020):
Friday's trading range has been $1.40 (2.97%), that's below the last trading month's daily average range of $1.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GDXJ.
Prices are trading close to the key technical support level at 45.80 (S1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 45.80 where further sell stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for GDXJ ETF. Out of 411 times, GDXJ closed higher 52.55% of the time on the next trading day after the market condition occurred.