Let me show you another great case where Harmonic Elliott Wave theory accurately predicted not only move up but also a reversal zone and the following drop in GDX.
On January 22nd I warned my subscribers: "GDX - it may continue grinding higher"
In the report posted on 1-22-2020 I wrote:
“The structure of that rally off the low made by GDX at 27.61 on January 14 is ugly. It looks like a textbook corrective a-b-c up structure. That is one of the reason I believe that is a corrective bounce in wave -b- up. Today it curled down but because that is a wave b that can come with an ugly structure that does not mean much. It can continue moving higher tomorrow. I added three extensions of subwave a of that wave -b- up:
– 76.4% ext of subwave a up = 29.17, and
– 100.0% ext of subwave a up = 29.47, and
– 123.6% ext of subwave a up = 29.77;
– 100% and 123.6% are very possible targets for that move up.”
GDX - 90 min chart updated at 11-10 AM on 1-22-2020
When price gapped up and hit the Target Box I reaffirmed my bearish outlook:
Three trading days later, on January 27th GDX has opened right inside that Red Target box. That morning at 8-55 AM EST I posted a report saying:
“Look how ugly is the structure of that move up off the last low made at 27.61 on 1-14-2020 I maintain my bearish out look for GDX. It can drop down to 27.50 – 27.00 once again in subwave -c- down that would complete a larger corrective wave ( b ) down.”
GDX - 90 min chart updated at 8-55 AM on 1-27-2020
GDX dropped hard after it got Rejected by the Red Target box
After my bearish report posted in the morning GDX was going down the whole day. In that report posted at 10-17 PM I reaffirmed my bearish expectations again:
“This count suggests impulsive move down in the final subwave -c- down. It may push price back down to 100% ext of subwave -a- = 27.19. That move down would complete a larger corrective wubwave ( b ) of wave ( v ) up.”
GDX - 90 min chart updated at 10-17 PM on 1-27-2020
The following day decline continued...
At this point there is no any signs telling us that this drop in GDX has completed. Ideally it should extend to at least 27.19, which is 100% ext of subwave -a down. But it may extend to 109.2% ext at 26.96. That drop should complete a large corrective subwave ( b ) down and set stage for another strong rally in wave ( c ) up that would complete the Five Wave up fractal that started at 20.14 in May 2019.
GDX - 90 min chart updated at 10-45 AM on 1-28-2020
Trading is risky. Read this important Disclaimer
HIGH RISK WARNING
Trading stocks, options, or futures carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. CastAway Trader LLC provides general overview of trading methods that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading. You should seek advice from an independent financial advisor. Past performance is not necessarily indicative of future success.