Nested Impulse Pattern Signals Continued Upside
The Elliott Wave analysis for the VanEck Gold Miners ETF (GDX) shows a strong bullish trend since December 30, 2024. This rally forms a “nesting impulse” pattern with smaller waves building into an extended third wave. From the December low, wave (1) peaked at $42.66, followed by a wave (2) pullback to $38.58. GDX then entered a powerful wave (3) with nested sub-waves driving prices higher.
Detailed Wave Structure Analysis
In wave (3), wave 1 rallied to $46.94, with wave 2 correcting to $39.95. Wave 3 extended upward, with sub-wave ((i)) ending at $43.70. Sub-wave ((ii)) corrected to $40.91, then sub-wave ((iii)) surged to $52.91. Strong bullish momentum continues to dominate the gold mining sector. A pullback in sub-wave ((iv)) is now expected, attracting buyers for sub-wave ((v)). This should complete wave 3 before a larger wave 4 correction.
Trading Strategy and Key Levels
As long as the $39.95 pivot holds, dips should find support. Support may form in a 3, 7, or 11-swing pattern. This signals more upside potential for GDX in the near term. Investors should watch these levels for strategic buying opportunities. The pattern suggests sustained interest in gold mining equities. Favorable commodity cycles likely contribute to this bullish sentiment.
GDX 1-Hour Elliott Wave Technical Chart
Chart showing current wave structure with projected targets and critical support at $39.95
