Short term Elliott Wave view suggests that pullback to $26.04 ended wave ((4)). GDX has since rallied within wave ((5)). Subdivision of wave ((5)) is unfolding as an impulse Elliott Wave structure. Up from wave ((4)) at $26.04, wave 1 ended at $28 and pullback to $27.5 ended wave 2. The miners then rallied in wave 3 towards $29.17, wave 4 ended at $28.31, and wave 5 ended at $30. This rally to $30 concludes wave (1) of ((5)). Subdivision of wave 3 also unfolded as an impulse of lesser degree as the chart below shows, illustrating the fractal nature.
GDX is now correcting cycle from August 1 within wave (2) before the rally resumes. Structure of the pullback is unfolding as a double zigzag. Down from $30, wave W ended at $28.87 as a zigzag where wave ((a)) ended at $29.3, wave ((b)) ended at $29.82, and wave ((c)) ended at $28.87. Wave X bounce ended at $29.92, and wave Y is expected to end at 28.09 – 28.79 with subdivision also as a zigzag. Wave ((a)) of Y ended at $29.o7, wave ((b)) of Y ended at $29.75, and wave ((c)) of Y is now in progress towards $28.09 – 28.79 before buyers appear. We don’t like selling the miners and expect buyers to appear in 3, 7, or 11 swing as far as pivot at 26.04 low stays intact.
GDX 1 Hour Elliott Wave Chart
