By Scott Pluschau

Last week the Junior Gold Miners (GDXJ) broke through resistance with big Volume on Monday which I outlined in a prior post here, and this is what is needed to get a market up off the floor. Now we are seeing follow through and continuation of this change in trend in the Daily timeframe. Friday GDXJ was up nearly 6% on huge Volume, which I highlighted in the Blue rectangle on the lower sub-graph of the Daily chart, left hand side below. Click on the chart to expand. The Bears are now on the run in the short term.

The biggest test is going to be at Horizontal resistance on the Weekly chart around $55.00 per share. In my opinion the most important horizontal level is one that has both been previous support and resistance such as that which can be seen on the Weekly chart with the blue drawing. Above there and the path of least resistance will be higher in the Junior Gold Miners.

In the meantime the Volume was massive this week with Bullish price action and we have a large bodied green candlestick in the Weekly timeframe with the market opening on lows and closing out on the highs, and this is very Bullish. The Bears should be running for cover with every surge higher from here toward resistance.

There is still a long way to go to the major horizontal level in the bigger picture and a potential breakout there, but that is where the Bears are going to be in a very bad spot. Right now the Bulls seem to be in control.

(Click on chart to expand)

I am in the process of producing a video that will be posted on the blog soon, so be on the look out for more education material that expands beyond the chart analysis in the near future.

Stay in tune with these developments by joining me on Twitter/Stocktwits/ or Linked In at Scott Pluschau, or you may use the follow by email option on the right hand side of the blog.

http://scottpluschau.blogspot.com/

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 -- Published: Monday, 20 January 2014 | E-Mail  | Print  | Source: GoldSeek.com

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