As forecasted yesterday, $GDX continued to go down and formed a strong bearish candle on an increasing volume. Expect no bottom yet. Let’s explore the hypothesis.
As I forecasted in the Weekly Analysis, $GDX continues to decline:
Today’ candle is a typical bearish continuation candle. 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. The weekly candle is forming a very strong bearish signal.
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 or three large red monthly candles in a row.
Odds: Strong Bearish
Not much 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.“
The $31 target has been hit. The $25 seems to be next. The weekly candle would confirm this hypothesis.
The detailed previous Monthly and Weekly analyses with forecast can be found by the links below.
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Previous Monthly & Weekly: