On January 22nd I warned my subscribers: "GDX - it may continue grinding higher"
“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.”
When price gapped up and hit the Target Box I reaffirmed my bearish outlook:
“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 dropped hard after it got Rejected by the Red Target box
“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.”
The following day decline continued...
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