Today $GDX formed a standard bearish continuation candle on a higher volume. Expect no bottom yet. Let’s explore the hypothesis.
As I forecasted in the Weekly Analysis, $GDX continues to go down:
Today’ candle is a typical bearish continuation candle. The candle today was rejected exactly at the 8 EMA line. The 100/200d MA bearish cross, an increase in volume and other indicators support a continued decline.
The bearish pressure continues on the daily frame and is significant on the weekly/monthly.
There is no bullish sign so far.
!Two of the monthly indicators signal a possible wave 3/C on the monthly scale. It would not surprise me if we see two-three large red monthly candles in a row.
Odds: Strong Bearish
Nothing to add to what was previously said:
From the last Monthly: “GDX continues to be under a strong bearish pressure on the monthly and a significant effort would be required to overcome this. Unless there is a strong bullish move in the first week, I am expecting GDX to continue down in August.
The long term targets continue to be the same as I identified several weeks ago – $31, $25, $15. The levels and forecasted counts are on the monthly chart. Until I can see a strong bullish move on the monthly frame or at least a rally on weekly that would recover the long-term damage, the bearish odds remain in force.“
If $GDX closes tomorrow above $33, or +2.65%, if would make a strong daily and weekly reversal statements. We will see how it closes on Friday the 13th.
The detailed previous Monthly and Weekly analyses with forecast can be found by the links below.
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Previous Monthly & Weekly: