The decline ended on September 2018 and GDX has been in a bullish phase since then. Higher lows on the charts are patterns of a bullish phase, with this wave 1 containing diagonal waves. Pretty trend lines will rarely work even if we are expecting a full set of 5 waves in Minor degree. Also, you can’t trust any angle that much and in this case the angle change dramatically as we started up wave 3 in Minor degree.
Even chart gaps have opened up below present prices but they can stay open for the entire bullish phase. Besides that, the big open gap at the $34 price level is a much more powerful draw.
With the fast move up in GDX it also changes the Gold/Gdx ratio which sits at 50.1 today. GDX is now more expensive than it has in the last 2 years. Any true bullish phase still to come, will push that ratio much further as 30:1 is my most expensive ratio to beat!
Jumping on a bullish bandwagon after it has already gone vertical or near-vertical only works if you have the bigger direction right. We can run into all sorts of wild corrective moves yet, but after each correction gold-stock, ETFs should push higher.
I can’t tell you when this GDX bullish phase will come to an end as extensions can push GDX beyond logic. Anywhere between $45 and $55 can be my price target after the impending 5 waves up have completed.
Once all the analysts turn bullish on gold stocks we know there is nobody left to jump on the bandwagon.