The rally could go a little higher, but it would likely be corrective. The initial downside penetration of p=45.62 in December was sufficiently decisive to imply that GDXJ will eventually fall to D=40.21. In fact, the breach was brutal enough to warrant trying a ‘mechanical’ short from the red line. If so, it would take a stop-loss at 47.42.  That trade has already triggered and is slightly profitable, so I’ll suggest enjoying it from the sidelines.