In my daily update yesterday I mentioned that I am optimistic about the stock.
There was no change to my view based on the candles. I believe that GDX completed wave i of wave 3 and is pausing for a day or two to complete wave ii before resuming the rally. I marked the possible waves on the chart below.
My short-term projection has not changed and I am copying the section from yesterday’s post.
- GDX to reach 35.50 – 36.10 in the next couple of weeks.
- Time targets are based on the channel projections: March 24 – April 6. This would depend on the channel the stock is going to take. Currently I can determine two channels with approximately equal probabilities. The next few days would be able to provide more guidance.
- While I could discuss the next targets for waves 4 and 5, let’s take one step at a time and get the wave 3 done first.
My weekly forecast also stands:
- If this week closes above 34.35, the reversal of 7-month bearish trend would be confirmed.
- If this week closes with a green candle, but below 34.35, the confirmation is likely to be received one week later.
- If this week closes with a red candle, the odds would flip to the bearish side with possible continuation of the 7-month bear trend.