This $GDX study continues the series of Weekly Analyses that @InvestingAngles provides for the followers and subscribers.
This Weekly Analysis contains:
– an overview of daily and weekly candle charts and TA;
– a long term $GDX forecast;
– a short term projection and targets.
The Yearly, quarterly and monthly GDX candles are bearish and the long term bearish pressure is substantial.
GDX formed a Falling 3 Methods, one of the most bearish continuation combos, on the weekly frame and this again flipped the odds bearish. A continued move down would be supported by 8/20 EMA and 50/100 DMA bearish crosses and by a few other indicators.
The Falling 3 Methods is not very strong this time and there is a chance of a mini rally at the beginning of next week.
The daily printed a Bullish Harami and the odds are technically bullish. However, lack of support from various indicators might turn this formation false.
Anyway, a confirmation for either path is required at this point.
The long term chart (below) remains unchanged for 13 months. There is a chance that GDX is working on an Ending Diagonal for wave (C) to complete the very long correction that started in year 2011. Based on the projection, the process could take another year or two.
The mid term chart (above) remains the same for a while.
Red path (primary):
GDX completed waves i and ii and could accelerate down in wave iii.
GDX is setting up for a strong rally and is working on a i-ii setup. Low probability for now. A new lower low would invalidate this count.
FORECAST for 2022:
The candles on the larger frames (weekly and above) are moderately bearish and the long term odds are bearish. The rallies are expected to be the short-term ones.
In order to flip the odds bullish in such candle environment, the miner needs to develop a bullish candle formation on at least the weekly frame. There is no such signal so far.
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