During the final hour of today's trading session notable hedge fund manager Jeffrey Gundlach tweeted that the GDX was breaking out from a "textbook six month pennant formation" - adding that an up day tomorrow would confirm it:

He did preface his comment with "You need a magnifying glass," and I would go further to say that even with a magnifying glass this is not a breakout, yet. 

GDX (Daily)

A strong up day tomorrow could absolutely confirm a breakout from what Gundlach calls a "pennant formation," or which could more simply be called a breakout from a six month downtrend (a series of lower highs). In fact, a descending triangle is probably the most appropriate technical chart pattern to assign any eventual breakout:

GDX (Daily)

A weekly close above the 6-month downtrend (~$23.25 or higher) would trigger a measured move target of $27+ from the descending triangle pattern. Moreover, the fact that the breakout trigger would take place on a Friday would add even more weight to the power of the pattern and increase the probability of the measured move (17%+) coming true.

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.