Elliott Wave Insight: GDX Climbs Higher After Three Wave Decline

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Elliottwave_Forecast
06-26

The rally in the Gold Miners Junior ETF (GDX) from its December 30, 2024 low remains intact. This rally is unfolding as a five-wave impulse pattern, as observed on the 1-hour chart below. Wave (4) of this impulse concluded at $44.75, setting the stage for wave (5) higher. Wave (5) is currently progressing with its own impulsive subdivision. From the wave (4) low, wave ((i)) peaked at $46.70, followed by a pullback in wave ((ii)) to $45.19. The ETF then surged in wave ((iii)) to $54.62. Subsequent correction in wave ((iv)) ended at $51.12. The final leg, wave ((v)), completed at $54.73, marking the end of wave 1 in the higher degree.

Following this, GDX entered a corrective wave 2, characterized by a clear seven-swing corrective structure. From the wave 1 peak, wave ((w)) declined to $52.19. It was then followed by a recovery in wave ((x)) to $53.74. The subsequent wave ((y)) bottomed at $50.70, completing wave 2. The ETF has since bounced from the 100%–161.8% Fibonacci extension zone of $49.61–$51.18. Currently, GDX could either resume its rally to new highs or stage a three-wave bounce before a potential larger double correction. However, even if a deeper pullback occurs, the corrective nature of the decline from the wave 1 peak supports a bullish outlook, suggesting that any downturn is likely a temporary pause within an ongoing uptrend.

Gold Miners ETF (GDX) 60-Minute Elliott Wave Technical Chart

GDX Elliott Wave Technical Video

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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