Fibonacci Channel

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:

First:

Be mentally flexible enough to recognize the trade is falling apart and then exit.

Second:

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.

Summary:

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.

Positioning

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.

Stay Tuned

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