GDX / GDXJ Update

This is from Friday's original idea looking for a break in GDX which came today. As mentioned in today's earlier update I was looking for GDX/J to pullback a bit and show continued accumulation before entering a short term long position on a volatility shakeout move.

Here's how it is progressing so far...

 As of Friday we were looking for a break in GDX below $46, this would serve as a potential head fake shakeout move, but it must be confirmed that the shakeout is being accumulated before entering. If you are not familiar with this trade idea, make sure you see this morning's update and the link in that update to Friday's initial idea.

 GDX is rounding over, this is what I wanted to see from this morning's update, however I am not seeing the strong 3C positive divergence that needs to be there for this trade to be worth taking a shot at, it may be GDX is still too high and it may see a positive divergence at a lower level near the white box.

 You can see the 1 min chart turned GDX around with a negative divergence.

The same holds true for GDXJ, but to a lesser extent, it does look like the stronger of the two. As of now I would continue to be patient and see if we can get a strong positive divergence on an intraday pullback here.