Goldtent TA Paradise

My Take on a GDX Fractal

1. SirWeston says:

   December 7, 2015 - 5:09 pm at 5:09 pm

   Nice, but so far price looks much weaker in your 2nd series of that fractal. The first series green box makes a low, then a higher low, then in the purple box makes an even higher low..but the 2nd series has price making a low in the green box, then a lower low, then in the purple box makes a low no higher than the first 2 lows—-def weaker. For highs we have in the 1st series getting above the BBand’s moving average, then again getting above it in the purple flag. ..but in the 2nd series price can’t even reach the moving average. So we have a steeper slope now in GDX with weaker highs, and weaker lows due to poorer bounces off the bottom BBand. Looks like the first purple was a nice rising wedge at the time, but currently in the purple we already have a rising wedge that completed and popped up now falling (could turn into a bigger one if price continues to rally). As far as potential for the rally goes based on this fractal it looks like if we kept things proportional to the spacing between rally tops and the moving average, then this rally would top out around mid15. ..or if we used the square grid to measure it also comes out to about mid15. The first fractal series began after a sell off that started at the top BBand, but the second fractal series began when price couldn’t even get above the mid=moving average. I def agree that if price could get impulsively over 17 the bottom would likely be in for gdx regardless of gold. GDX Weekly Fractal says bottom in if sustained break on weekly closing basis over 14.70 (only other option would be to repeat that fractal again for almost 3 years straight now, but that would would take gdx near low single digits). So you think we continue up in GDX from here till late January, and only get 1 buck higher than last Friday’s high during that time? Thanks for your posts!

   • Mark says:

     December 7, 2015 - 7:29 pm at 7:29 pm

     It’s so hard to tell at this point whether this will be an impulsive or corrective move….we’ll just have to follow the structure. Things could get very interesting if the downtrend line gets broken, even before hitting $17 ( see chart link for TL I’m referencing)….

     http://schrts.co/7CMrgm