As I forecast in my previous weekly update, the stock continues to struggle in the inflection zone. While the last two days helped to switch the weekly and monthly odds to the bulls side, the confirmation is yet to come. As the current correction is a multi-month one, a confirmation for the possible reversal would come by the monthly candles.
On the monthly chart, the stock made a rather clean Bullish Harami combo. A reversal would be confirmed if GDX closes above 36.28 on April 30.
The weekly closed with a Bullish Engulfing. If the next week closes above 34.35, a reversal would be confirmed on the weekly time frame.
On the weekly chart I drew a channel that is ideally aligned on the candles wicks. If the weekly closes above the upper channel boundary, it would be the next big step towards confirming the reversal.
The daily candle gapped above the 20 and 8 EMA lines and closed above 50 MA line. This is definitely a bullish sign.
I view that the next one-two weeks could experience a strong rally. A closing print on April 9 – above or below 34.35 – would be extremely important for determining the direction for the following week.
If GDX successfully surpasses 34.35, the next target to watch would be 36.28. GDX could overshoot 36.28 in the middle of April, but, I want to emphasize, it would be very important how it closes on April 30.
So far I maintain the bearish path that I charted on October 28, 2020 until I can see a confirmation of reversal on the monthly scale.