Gold Thru the Lens Of GDX

The structure of GDXJ and gold are not as clear as that of GDX.

GDX shows a clear impulsive 5 wave rally from October into April---from 21.50 to 36.

Subsequently, GDX has been in a tedious correction, an A B C decline.

Whether a C wave bottom is in place is debatable.

There is potential for a lower low.

Be that as it may a breakout above the 31/32 region projects to as high as 73.

That’s a 100% rally.

That gives you an idea of my expectation for the potential on deck.

Here’s how I come up with that projection.

From the 21 low, 540 degrees up is 57.

43 is 360 degrees up.

73 is 720 degrees up from 21.

Notably the 38 high is 270 degrees up from the 21.50 low.

So twice that of 540 degrees gives us a minimum target of 57.

The junior miners in GDXJ will outpace GDX.