$GDX – Weekly Analysis
Friday’s move in GDX was outstanding, and in this weekly update we’ll discuss the revised targets. We’ll evaluate the candlesticks, Elliott Waves, and technicals to outline the highest-probability scenarios.
CANDLES
From the candlestick perspective, the last two days were indeed concerning. A strong Dark Cloud Cover on Thursday was technically confirmed on Friday despite the green candle. The move also affected the weekly close, which now presents a potential setup for a Falling Three Methods. Bears are definitely in town, but they still need to solidify their efforts and confirm their intent. Monday provides an excellent opportunity for such a move.
Closure of the 10D frame could reverse the bearish odds if GDX closes above $74.99. Any close below this level will confirm bearish presence—the lower, the stronger.
Elliott Waves
But the main concern on Friday did not come from the candles—it came from the wave structure. GDX dropped just a few basis points below the invalidation level for the potential impulse we discussed earlier this week. As a result, the wave up is now corrective, and one way or another, a lower low for GDX has a much higher probability.
The expected move is significant, with the potential to shave off roughly 22–27% or more from the most recent ATH. Be prepared.
Happy Trading!
