GDX – will we see higher highs in miners or they have made a lasting top in August 2020?
GDX - 60 min chart updated at 10-30 PM on 11-23-2020
Now let me show you a Bearish count. Micro count is almost the same. But that count assumes that GDX topped in a large corrective wave (4) up in August 2020 and has been moving down in a large impulsive structure of the subwave (A) of wave (5) down (scroll down to see the weekly chart ).
Under the bearish count this leg down is subwave (a) of wave ( iii ) down. After it finds support in the Green Demand Zone it will only produce a temporary pullback in subwave ( b ) up. And then GDX would start the strongest part of the decline in subwave (c) of wave ( iii ) down.
GDX - 60 min "Bearish" chart updated at 10-30 PM on 11-23-2020
As long as bulls hold GDX over that level bulls retain some chances to turn this market up and make a new higher high in wave 5 up.
If that level is lost that would mean we saw a long term top in GDX in August 2020.
One thing you should understand. The market is like a polling machine without a right to vote.
The market does not know at this point if that critical support at 31.22 will hold or not.
That means to us that there will be thousands of traders with bullish bias who would be buying GDX once it approaches that level.
Because I have bearish directional bias I think GDX may extend that decline to test support no.3 or support no.4 at 30.90 – 30.60 and then produce a corrective pullback to 35.60 – 36.60
GDX - Weekly "Very Bearish" chart updated on 11-23-2020
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