GDX has been on a wild bullish ride that many gold investors have been hoping for. What is important is the 2015-2016 gold-stock bottom as the majority thinks we are in a huge bull market that still has a long way to run.
I think we are in a “C” wave bull market and it could be a complete set of 5 waves in Minor degree. It’s still a bear market rally from an Elliott Wave perspective and the entire time investors will get convinced to jump onto the gold stock bandwagon!
When wave 3 comes then all these “New Riders” will get thrown off when the 4th wave bearish phase becomes obvious. The 4th wave could also end up being a triangle which dictates the coming end of a this Minor degree run.
The Fibonacci $34, $55 price levels will supply resistance levels with $65 being a possible maximum.
The Gold/GDX ratio sits at 50.1 which should continue to compress as this bullish cycle keeps going. 50.1 is the most expensive ratio this year with 30:1 being the most extreme reading I have recorded.
GDX is in a bullish mood as solar cycle 24 is still crashing and the start of solar cycle 25 can cause all gold and gold stocks to reverse and crash. If this invisible 5 wave sequence comes true, then I think the impending bear market would be another 5 waves down in Intermediate degree.
I have a few penny stocks with exposure to gold and they have acted very bullishly, which also helps to confirm the bigger bullish trend!