GDXJ Junior Gold Miners ETF 2-Hour Chart; Oversold; Positive Divergence

Keystone is long GDXJ currently, starting into it last week and piling on Friday. This week will tell the tale. Same-o with GDX. Keystone has some of that long now as well. The chart from last week is the green falling wedge, oversold conditions and possie d that called the bottom and bounced price+4% from the green arrow. Whoopie. It's a party. The juniors have fuel in the tank and up she goes. Thwack. Huh? Whack. Ahhhh. Ooooh.

The central bankers are intervening in markets again as the US stock market falters. The Fed, ECB, BOJ, PBOC, these four central banker horseman of the financial apocalypse keep showing up, as well as the  RBA (Australia) and BOK (South Korea), and other central banks, are all tossing the sand around in the global sandbox.

You see the gap down occurring in GDXJ as the US dollar index jumped higher tagging 92 (reference previous USD dollar chart) and the euro drops. US Treasury yields are on that wild trajectory higher (which should begin stalling; see previous TNX chart) so things were getting out of hand. Price comes back down for a lower low and as the neon green lines show, all indicators are possie d so price should be on the launch pad again. Note that little red line shows the MACD actually remained weak and bleak when price made the low, therefore, the MACD actually wanted price to come back down for a matching or lower low anyway. This occurs and all indicators are now positively diverged and want price to move higher in this 2-hoiur time frame.

The stoch's and histogram are long and strong now so they want to see a higher high in price after any softening occurs. The neon green arrow shows the exact intraday low due to the possie d. Price jumps higher as GDXJ starts to absorb the possie d fuel into its engines. The bottom band was violated so the middle band was on the table, which occurs at 44.09. The upper band is on the table; it has been a little while since price touched the upper band at 46.85. The 50-day MA is at 47.16 coming down to form a confluence at 46.80-47.20. That light blue trend line is coming through there as well and serves as an upside resistance target.

GDXJ may want to come back up into that downward-sloping blue channel going forward. The GDXJ daily chart is set up with possie d which is what you want to know that the hourly should move as forecasted. All that said, GDXJ is down -2% pre-market. Gold is down 10 bucks to 1691. It was higher earlier. Euro drops to 1.1868 so the dollar index pops to the 92.29 palindrome. Holy schamolie. Look at that dollar go. The massive shorts in the dollar are all puckering their buttock cheeks this morning. Are they about to panic and start waving the March 2020 redux banner? 10-year yield is at 1.60%. 

If the dollar pops wildly higher cratering stocks, the S&P futures are off -36 points right now, gold and the miners should tank. That occurred last March but the move this time, if this scenario unfolds, should not be as bad. Traders and institutions ahve been buying bitcoin and other digital darlings for the last year and many of those folks used to be gold bugs. Now they are bitcoin bugs; bitbugs. It sounds like bedbugs. As things fall apart, people may think twice and realize it may be best to be holding the gold bar in your hand rather than a smartphone tapping in a code number to make sure your bitcoin are still there.

GDXJ and GDX are expected to move higher but the overall markets are in a choppy disruptive time. Keystone will stay in the trade but does not like it if those lows are taken out say sub 44. The lumps would likely be taken for a failed trade at that point. The positive divergence fuel is sitting in the GDXJ fuel tank but the central bankers are standing around jawboning and getting in the way. This information is for 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.

Note Added 6:37 AM EST: GDXJ is down -1.6% to 44.90 in the pre-market. US dollar 92.20. Euro 1.1876. VIX 27.32. S&P -22. 10-year 1.59%. Bitcoin 50.3K.

Note Added 8:52 AM EST: GDXJ is down -1.6% to 44.86 frozen like a deer in the headlights not knowing which way to take off like a banshee.

Note Added 12:49 PM EST: GDXJ is down -1.3% to 45.01 like its boots are glued to the floor. It will pivot from 45, it has shaped a diamond pattern bottom, so time will tell, price has to choose up or down.

Note Added Tuesday Morning, 3/9/21, at 6:39 AM EST: The US dollar gained a bit more ground higher so gold lagged. GDXJ is punched in the face losing -2% to 44.70. In the pre-market, however, it is up +3% to 46.04.

Note Added Wednesday Morning, 3/10/21, at 7:30 AM EST: GDXJ gains +3.8% to 46.40 yesterday. Price is chopping sideways.