The quickest way to get a bunch of attention on twitter is to post about bullish metals or bearish broader markets. Well here is my attempt with bullish metals :)...........JK about me doing it for attention.
Most if not all of you know I run a service, one that I have received very good feedback from and have many members that have been with me for over a year (since the start of the service). This sometimes limits me to what I can and cannot give away in order to protect my subscribers and what they pay for. So while I may not give my opinion on a hourly or daily chart on GDX I will happily provide my opinion on the weekly chart.
I believe that precious metals Gold and Silver along with GDX are merely in a corrective sequence based off of the monthly chart (not provided). Meaning we are simply in a large ABC lower starting from the 2011 high. 2011 high to 2016 low was 5 waves down for a wave A, this means we are currently in a large wave B. In the chart below I display the price action of this wave B so far. This wave B should consist of a smaller ABC that is labeled in blue on the chart. As you can see the blue A is made up of 5 waves with wave 1 being an extended first, wave 3 not being the shortest wave, and 4 not overlapping 1. Next you can clearly see a double correction formed labeled by the (w) (x) (y), this now forms the blue wave B. Now If I am correct we are in a blue wave C here that should develop in some sort of 5 wave sequence just like blue A did.
Keep in mind this sequence started just over 2 years ago. This means the chart displayed will not complete in a matter of weeks or a couple of months but rather at-least a year I would suspect.
I hope everyone enjoyed this post and remember every move is tradeable but not every move should be traded by you. I am a firm believer of that. Stay flexible and stay patient traders best of luck!
Click here to enlarge: Chart Link
For those of you wave geeks like myself. I do understand this is merely a corrective sequence on the monthly chart meaning this can form into a triangle sideways or many different sorts of combinations, and that I will handle IF the time comes along with my subscribers. For now I find the weekly chart that is posted above to be the highest percentage odds BUT I will happily alter or adjust if it is needed.