GDX Elliott Wave: Buying The Wave Four Pullback

In this technical blog, we are going to take a look at the past performance of 1 hour Elliott Wave Charts of GDX, which we presented to members. In which, the rally from 05 June 2020 lows, showed the higher highs in an impulse sequence favored more strength to take place. Also, the right side tag pointed higher & favored more strength. Therefore, we advised our members to buy the dips in GDX in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

GDX 1 Hour Elliott Wave Chart

GDX 1 Hour Elliott Wave Chart from 7/14/2020 Pre-Market update. In which, the ETF is showing an impulse rally from the lows where lesser degree wave (iv) ended at $34.08 low. Wave (V) ended at $39.44 high, which completed the wave ((III)). Down from there, the ETF made a pullback in wave ((iv)). The internals of that pullback unfolded as a zigzag structure where wave (A) ended at $37.82 low. Wave (B) bounce ended at $39.18 high and wave (C) managed to reach the $37.55- $36.54 100%-161.8% Fibonacci extension area of (A)-(B). From there, the ETF was expected to find buyers for more upside or for 3 wave reaction higher at least.

GDX 1 Hour Elliott Wave Chart

Here’s 1 hour Elliott Wave Chart of GDX from 7/15/2020 Pre-Market update. In which the stock is showing reaction higher taking place from the blue box area. Allowed members to create a risk-free position shortly after taking the longs.