GDXJ dominated by bulls lifting the market higher throughout the day
VanEck Vectors Junior Gold Miners ETF (GDXJ) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, GDXJ ended the month 7.6% higher at 49.58 after gaining $1.58 (3.29%) today. Today's close at 49.58 marks the highest recorded closing price since August 19, 2016. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Monday's high at 48.05, GDXJ ETF confirmed its breakout through the previous session high after trading up to $1.76 above it intraday.
Daily Candlestick Chart (GDXJ as at Jun 30, 2020):
Tuesday's trading range has been $2.30 (4.82%), that's above the last trading month's daily average range of $1.78. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GDXJ.
One bullish candlestick pattern matches today's price action, the White Candle.
Crossing above the upper Bollinger Band for the first time since June 23rd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 45.64 or signal the beginning of a strong momentum breakout leading to even higher prices. The last time prices broke out above the upper Bollinger Band on June 23rd, GDXJ actually lost -2.98% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 50.37, upside momentum could speed up should the ETF be able to break out to new highs for the year.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for GDXJ ETF. Out of 142 times, GDXJ closed lower 56.34% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 59.86% with an average market move of -1.08%.