Majority of the time we are confronted with multiple choices in any of the wave counts that we can produce, as all of it depends on where we are counting from.
In the case of GDX, I’m just going to talk about one move from September 2019 to February 2019. I labeled the same move as a Minor degree “A-B” sequence. A triangle in a “B” wave has a finality to it that forces me to look for and ending at least one degree higher, which would be Intermediate degree.
Just as easily as the wave count can fit a triangle, with just a few changes I can also use it as a diagonal set of 5 waves with an ABC1, ABC2, ABC3, ABC4, and ABC5 wave count. That would make GDX a bullish scenario where a correction would happen. The present “D” wave bottom would be the same as the previous 4th wave of one lesser degree, which would be around the $20 price range.
Of course, there is also the “W, X, Y, X, Z” label I can use which is just a glorified triangle. The most desperate wave count would be to try and force a pure impulse wave count on GDX. This would give as a potential of at least 4 different wave counts, with 2 of them being very bearish and the other 2 being very bullish.
I would love it if we had another bullish setup as I do trade GDX when I can. If a correction is due then I would like to see a huge spike to the downside which are a bit softer spikes than what we would get in Gold itself.
Many times GDX runs from month end to month end so maybe by the end of April, we will have a new picture.
The Gold/Gdx ratio is at 58.53:1 which is not all that cheap from an extreme of 84:1.