GDXJ Surges On Massive Volume
Justin Smyth | Jul 10, 2014 12:26AM ET
Market Vectors Junior Gold Miners (ARCA:GDXJ) broke out of a bullish pennant consolidation yesterday on the second highest volume ever. The volume over the last month in general has been extraordinary in GDXJ.
There are a couple of things to note on this chart that trend followers and technicians will start picking up on. The 200ema is turning higher, and if GDXJ establishes support above this moving average on the next pullback then it will start looking like an uptrend. GDXJ also closed at its highest level for 2014 yesterday and notice the volume on this rally is dwarfing the previous rally back in January and February.
Finally on another note, the GDX:GLD ratio is about to make a 52-week high as well, and that ratio turning higher is a sign of a new bull market in gold.
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