GDX Correction Remains In Progress

Elliott Wave view in Gold Miners (GDX) suggests the Index is correcting the cycle from March 16, 2020 low. The correction is unfolding as a double three Elliott Wave Structure. In the 60 minutes chart below, we can see a wave (X) of this double three ended at $42.05. The Miners have turned lower in wave (Y).

The internal wave (Y) is unfolding as a zigzag Elliott Wave structure. Down from wave (X) high at $42.05, wave ((i)) ended at $38.03, and bounce in wave ((ii)) ended at $39.24. Index resumes lower in wave ((iii)) towards $37.52, wave ((iv)) ended at $37.87, and wave ((v)) ended at $36.73. This ended wave A of (Y) to a higher degree.

The index then bounced in wave B which ended at $38.42. The internal structure of wave B unfolded as a zigzag where wave ((a)) ended at $38.08, wave ((b)) ended at $37.39, and wave ((c)) ended at $38.42. Gold Miners have extended lower in wave C. Down from wave B high at $38.42, wave ((i)) ended at $37.83 and wave ((ii)) ended at $38.29. Expect a few more lows in the Index to end wave C of (Y) before GDX finds support. A potential support area is 100% – 123.6% Fibonacci extension from the August 5, 2020 high which comes at $31.05 – $33.10.

GDX 60 Minutes Elliott Wave Chart

(Click on image to enlarge)

GDX Elliott Wave Video

Video Length: 00:09:28

Disclaimer: Futures, options, and over the counter foreign exchange products may involve substantial risk and may not be suitable for all investors. Leverage can work against you as well as for ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.