The VanEck Vectors Junior Gold Miners ETF (GDXJ) aims to track small-cap companies involved in gold and silver mining. Launched in 2009, GDXJ gives investors a chance to gain from junior gold miners, known for their price swings and growth potential compared to larger mining firms. The monthly Elliott Wave chart shows an important moment in January 2016, when the price was $16.36. This marked the start of a rise with a nested impulsive pattern. From this point, Wave (I) reached $52.50, and Wave II went back to $19.52, but the upward momentum continued through the later waves. On the daily Elliott Wave chart, we see a potential triple-nested structure starting from the low in September 2022. If the price stays above the key support level of $26.10, this could lead to a strong upward movement. Trading in the foreign exchange market carries risks, especially with leverage, which can result in losses. It’s vital to understand these risks and to ensure that investments match one’s risk tolerance. Never invest money you can’t afford to lose, as forex trading comes with uncertainties. We’re seeing a possible triple-nested impulsive pattern from the September 2022 low, suggesting a strong upward movement could be on the way for junior gold miners. The key factor is whether the price holds above the important support level of $26.10. Recent economic data supports this technical setup. The July 2025 Consumer Price Index (CPI) was at 3.5%, surprising analysts who expected a drop. Additionally, recent comments from global central banks suggest they may pause interest rate hikes, which usually benefits gold. These elements strengthen the bullish outlook for miners. For traders expecting this upward movement, there’s an opportunity to buy out-of-the-money call options expiring in late 2025. This approach offers leveraged exposure to a potential sharp rally. GDXJ’s implied volatility, now over 45%, also indicates that the market is anticipating a significant price move. Looking back from August 2025, we see that the major upward trend that began with the January 2016 low of $16.36 creates a long-term bullish backdrop. Junior miners are often quite volatile, and we can use this to our advantage. The current nested structure might echo that earlier surge. However, we must be cautious about the risk of falling below the $26.10 support level. To manage this risk, a bull call spread could be a good option. This strategy limits potential gains but significantly reduces initial costs and defines the maximum loss. It strikes a balance between aggressive upside potential and market uncertainties.

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