The VanEck Junior Gold Miners ETF (GDXJ) gives investors access to smaller mining companies worldwide. Recent Elliott Wave analysis suggests that the ETF started a growth phase from a low of $17.94. The price rallied to $52.50 before dropping to $19.52. The overall trend remains upward as long as the lows hold as support. On the daily chart, the major corrective wave II hit a low around $26, paving the way for wave III’s upward movement. Subdivision ((1)) peaked near $55.60, followed by wave ((2)), which retraced to about $42. The current subwave (3) is close to finishing, leading to a predicted wave (4) pullback before moving up again.

Near Term Dips and Support Levels

This forecast indicates that short-term dips may attract buyers as long as the crucial support level around $26 remains intact. This situation supports the continuation of the overall upward trend and the potential for more price gains. It’s essential to focus on this key support level to maintain momentum in this mining-focused ETF. Overall, the Junior Gold Miners ETF (GDXJ) shows a positive long-term outlook. The trend indicates that any pullbacks are likely temporary corrections within a larger upward movement. As long as the important low of approximately $26 is upheld, the main trend stays strongly positive. The technical strength is further supported by a notable move in gold prices, which are approaching $4,500 per ounce. This momentum built up throughout 2025 due to persistent inflation, averaging over 4% and diminishing the value of fiat currencies. Historically, such conditions are highly favorable for gold mining stocks, offering leveraged exposure to gold prices.

Derivative Trades and Risk Management

Despite several interest rate hikes from the Federal Reserve in 2025, geopolitical tensions and worries about sovereign debt have kept demand for safe havens high. Gold’s ability to climb despite rising yields last year shows its strong role as a wealth-preserving asset. The GDXJ, which increased by over 60% in 2025, directly benefited from these supportive economic conditions. From a trading standpoint, we are nearing the end of a short-term uptrend, likely followed by a corrective dip. This pullback should be viewed as a buying opportunity rather than a reason to be negative. We recommend preparing to buy into this weakness in the coming weeks. For derivative traders, this means considering buying call options or setting up bull call spreads on GDXJ with March and April 2026 expirations. This plan allows participation in the forthcoming upward leg while managing risk. The expected pullback would create a chance to enter these positions at better prices. It’s crucial to keep an eye on the essential support levels identified in the wave analysis. A drop below the significant $26 pivot would invalidate this positive outlook, requiring a re-evaluation of the entire trend. Therefore, any long positions should have risk management strategies that address this potential invalidation point. Create your live VT Markets account and start trading now.

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