GDX found strong rejection at the blue box area

In this technical blog, we will look at the past performance of the 1-hour Elliott Wave Charts of GDX. The decline from the 18 July 2023 high unfolded as an impulse sequence and showed a lower low sequence within the bigger cycle from the 04 May 2023 peak. Therefore, we knew that the structure in GDX is incomplete to the downside & should see more weakness. So, we advised members to sell the bounces in 3, 7, or 11 swings at the blue box areas. We will explain the structure & forecast below:

GDX 1-hour Elliott Wave chart from 8.30.2023

Here’s the 4-hour Elliott wave Chart from the 8/30/2023 Midday update. In which, the decline to the $27.28 low ended 5 waves from the 7/18/2023 high in wave A & made a bounce in wave B. The internals of that bounce unfolded as an Elliott wave zigzag correction where wave ((a)) ended at a $28.97 high. Then a pullback to $28.01 low ended wave ((b)) and started the ((c)) leg higher towards $29.71- $30.75 blue box area from where sellers were expected to appear looking for more downside or for a 3 wave reaction lower at least.

GDX latest 1-hour Elliott Wave chart from 9.12.2023

This is the Latest 1-hour view from the 9/12/2022 update. In which the ETF is showing a reaction lower taking place from the blue box area. Allowed shorts to get into a risk-free position shortly after taking the short position. However, a break below $27.28 low is still needed to confirm the next extension lower & avoid a double correction higher.