The GDX created a rocket ride and now has started to back off in a sharp decline. This is a good thing most of the time as sharp drops produce "C" wave patterns which are very bullish. This move up so fast that I think wave 1 was the longest wave, but remember we could be in a big bearish rally where first waves do extend more of them.
Besides, there are many open gaps well below present prices, and we have a big gap that just opened up above us. This is also a good sign as the gap to the upside will also certainly get filled.
A 4th wave bottom in Minute degree may be in progress and the next few weeks
, or to the end of this quarter, we should see a return to a bullish phase with another leg up.
GDX also turned
at a perfect $21, which is a Fibonacci number, and the next Fib number would be $34.
This $34 price level also contains another gap so if we get that far the contrarians will be very happy.
The $29 Price level would be a 1.382 ratio
from $21, so that could also be a big top.
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