After a big run from late July to mid September, the Junior Gold Miners ETF (GDXJ) formed a bearish candlestick reversal over the last 4-5 days. First, there was the gap and doji. This signaled sudden indecision after a big jump. Second, selling pressure followed this indecision as the ETF gapped down and closed weak to form a long black candlestick. Thought not picture perfect, this pattern resembles a bearish
evening doji star.
Click this image for a live chart.
Click this image for a live chart.
About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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