VanEck Gold Miners ETF ($GDX) has shown an interesting past performance based on the 4H Hour Elliott Wave chart. The rally from the 2.28.2024 low at $25.64 unfolded as a 5 waves impulse. This indicated that a pullback would occur in 3 swings before finding buyers again.
Elliott Wave Count Analysis
Looking at the 4H Elliott Wave count from 6.12.2024, we can see that the 5 wave impulsive cycle from 2.28.2024 ended on 5.20.2024 at red 3 and started a pullback to correct in 3 swings. The pullback was expected to find buyers at the blue box area ranging from 32.99 to 31.04.
Latest Update and Forecast
The most recent 4H update from 7.07.2024 shows that the rally took place as expected. The cycle from the peak at red 3 has ended and the ETF has reacted higher from the blue box area, allowing longs to get risk free. The ETF is now expected to remain supported with a target area towards $40 to $45 before another pullback can potentially happen.
Moreover, there is a possibility that the bounce might fail and continue lower in a 7 swings correction (WXY). Therefore, chasing the market at this point can be risky. To confirm the next leg higher and negate the possibility of a double correction, a break of red 3 high is required.
The VanEck Gold Miners ETF has shown an interesting performance based on the 4H Hour Elliott Wave chart analysis. The structure of the rally and the subsequent pullback have provided valuable insights for traders and investors. It is important to closely monitor the ETF’s performance in the coming days to make informed decisions regarding buying or selling opportunities.