GDXJ Gold Junior Miners Weekly Chart H&S

Contrast the junior gold miners with the majors, GDX. The GDXJ H&S pattern has achieved its lower target so all is right with the world and the H&S pattern can now be considered to be satisfied. One problem, however. Just like the GDX, the indicators printed lower lows (except for histogram and stochastics) wanting to see a matching or lower low in price to occur. The GDXJ is farther along in its bottoming process than GDX.

The tweezer bottom (note the two long tails that form a tweezer shape in the red square) carries a bit of clout and may hint that price does not need to come completely back down, perhaps down to fill the gap at 20-ish would be acceptable.  The large green arrow shows what happened when QE2 was announced.  Projection is similar to the GDX projection; probably best to wait for 17-20 where price should base and provide a nice entry. And, like the GDX, and as the green arrow shows, if quantitative easing is announced, GDXJ will take off to the upside. This information is fore educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.