Yesterday’s upside on the GDX, potentially could be the start of a move higher for wave 5 of an impulse wave that has been developing since Sept 2018. Short term if it continues to hold above $26.63 then more upside can be seen, although it’s crucial that the bulls push the market above $28.00, then $28.45 to further support a move higher.

A move back below $26.63 likely sees a new low for a 5th wave of a possible ending diagonal to end wave [c] of wave 4. Barring a major breakdown below $25.00, then the bullish case is still the preferred idea, although I would like to see a move above $28.45 to feel more comfortable that a rally is underway for wave 5.

Idea 1

Idea 2

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