After surging 26.6% in June, the Market Vectors Junior Gold Miners ETF (NYSEArca: GDXJ) looks like it might be taking a short breather before starting a new leg higher.

That is not a bad thing given the stellar performances turned in by gold mining ETFs this year, performances that include 26.3% year-to-date surge. That gain is enough to place the $2.3 billion ETF among this year’s top-10 non-leveraged ETFs. [Miners ETFs Could be Poised to Soar]

“After a 40% rally off the lows at $20, GDXJ is potentially forming a 16-week cup with handle type pattern on the weekly chart,” according to Deron Wagner of Morpheus Trading Group.

Wagner adds that it would be a positive sign for GDXJ bulls to see volume wane over the next few weeks before buyers become more vigilant and bid the fund higher.

“The handle portion is the current tight consolidation. Ideally, the volume should taper off as the price action chops around for a few weeks. Note that the 10-week MA (teal) has crossed above the 40-week MA (orange), which is a bullish trend reversal signal,” said Wagner.

Bolstering the near-term bull case for mining ETFs is bullish action in gold itself. Last month, the SPDR Gold Shares (NYSEArca: GLD) gained 6%. [Gold Grab is Back; Good for ETFs]

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