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GDX - 2016 low can get retested soon

Many analysts proclaimed that the low made by Gold and Gold miners in January 2016 was the long term bottom. That was the main foundation of their long-term bullish thesis.

But what if they made mistake?

What if the low made in January 2016 was only the bottom of wave ( 3 ) down? If we make that assumption then the structure of the move up that followed 2016 low would look like a perfect corrective (A)-(B)-(C) up bounce in wave ( 4 ) up! That count perfectly explains the incredible strength of that drop we saw on Friday. Check out the size of that huge red weekly candle. We have not seen such a huge candle since GDX made a lasting top at 66.98 in September 2011! That sends us a very important message. Specifically it says that this drop is a wave of a larger degree. That weekly count actually perfectly explains that drop. Under that count this is subwave (A) of wave ( 5 ) down. And that wave normally quickly pushes price to extreme made by the preceding impulsive wave ( 3 ) down. In this case that essentially means GDX may soon retest the low made by wave ( 3 ) at 13sh in January 2016!

GDX - weekly chart updated on 3-15-2020

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