Baseline, Extended

The resistance trendline, extended out on the GDXJ, ETF for the junior gold miners (seen below on the daily chart, top light blue line) is providing support to price this morning. Note how this is happening even as the U.S. Dollar gaps higher on the UUP ETF, though it is off the highs of the session. In technical analysis, oftentimes extending out that trendline is worthwhile to see if price remains sensitive to it. I am still impressed by the improved morale of gold bugs to step in each time the miners see sharp, one-day shakeouts where bears become boastful of the seemingly inevitable crash coming. And, yet, here we are again this morning with the precious metals and miners green in the face of a rising Dollar. JNUG and NUGT are on my radar as potential longs today, especially if GDXJ and GDX make a push towards their respective morning highs. Also note how this miners' action stands in stark contrast to natural gas, which has been unable to hold rallies for a while, rendering it an automatic sell into any strength.