Is there more pain ahead for the gold bulls?
Short answer: Yes
That is, unless the current patterns in price action change.
From a professional trader’s standpoint, one has to be on-watch for two things:
Be mentally flexible enough to recognize the trade is falling apart and then exit.
As Prechter put it years ago, be mentally prepared to accept the huge gain.
At this juncture, what is the chart of GDX, telling us?
Senior Miners (GDX), Daily
The un-marked chart.
Marking-up with Fibonacci time sequence.
Adding-in some trend lines.
Zoom out to show the big picture.
From low-close, to high-close, the counter trend move took a Fibonacci 34-days.
In the process, it appears that price action is now moving within a trading channel.
In addition, the counter-trend print high on 11/16/21, was close to a 38%, retrace level (not shown) of the entire move from the peak on 8/5/20, to the 9/29/21 low.
The last update detailed how a short position was opened in the miners (not advice, not a recommendation).
At this juncture, price action continues to indicate lower prices ahead.
The short is being maintained.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point®, trade mark: No. 6,505,279