Hello everyone. We will look at the past performance of the 1H Hour Elliott Wave chart of VanEck Gold Miners ETF ($GDX). The rally from 10.04.2023 low unfolded as a 5 wave impulse. So, we expected the pullback to unfold in 3 swings and find buyers again. We will explain the structure & forecast below:
Here is the 1H Elliott Wave count from 10.26.2023. The rally from 10.04.2023 peaked at blue (1) $30.16 and started a pullback to correct it. We expected the pullback to find buyers at (2) in 3 swings (ABC) at $28.09 – 27.20.
Here is the 1H update from 10.29.2023 showing the bounce taking place as expected. The ETF reacted higher after reaching the equal legs area allowing longs to get a risk free position. We expect the ETF to continue higher in wave (3) towards 32.65 - 35.47 before a pullback can happen. Alternatively, if the ETF is unable to break above $30.16 at blue (1) then a double correction lower can happen (WXY) before higher.