Analyzing the past performance of the 4H Hour Elliott Wave chart of VanEck Gold Miners ETF ($GDX) reveals an interesting pattern. The rally from 2.28.2024 low at $25.64 unfolded as a 5 waves impulse, indicating a strong bullish momentum. This suggested that a pullback would occur in 3 swings before finding buyers again.
The 4H Elliott Wave count from 6.12.2024 showed that the 5 wave impulsive cycle from 2.28.2024 ended on 5.20.2024 at red 3, signaling the start of a pullback to correct in 3 swings. The expected pullback against the low at $25.64 was projected to find buyers at the blue box area at 32.99 – 31.04, further supporting the bullish outlook.
The latest 4H update from 7.07.2024 confirmed that the rally was taking place as expected. The cycle from the peak at red 3 had ended, and the ETF reacted higher from the blue box area, enabling longs to operate risk-free. The ETF was anticipated to remain supported with a target area towards $40 – 45 before another potential pullback could occur.
Potential Risks
Despite the positive outlook, there were potential risks to consider. The bounce could fail and lead to a continuation lower in a 7 swings correction (WXY), making it risky to chase trades at the current levels. It was highlighted that a break of red 3 high would be needed to confirm the next leg higher and eliminate the possibility of a double correction.
Overall, the analysis of the 4H Hour Elliott Wave chart of VanEck Gold Miners ETF ($GDX) provided insights into the potential price movements and key levels to watch. Traders were advised to exercise caution and closely monitor the market for any changes in the established patterns. Taking into account the forecasted targets and possible risks, informed trading decisions could be made to navigate the volatility of the ETF.
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