When last we left our pattern in progress, we were at point ‘T’.

Reference Chart:

Current GDX Chart:

According to the reference chart, GDX should have had a vicious drop from point ‘T’ to point ‘U’. Instead it ground sideways to slightly lower for about the same time period (2 weeks). Next it should have had a sharp rise from point ‘U’ to point ‘V’ for about a week. Check.

Next, there should have been a strong drop from point ‘V’ to point ‘W’ which should have taken about a week. Check.

That brings us to the present. Based on the reference pattern, whats next? Well, early next week (starting Monday or Tuesday) we should see a strong rise from point ‘W’ to point ‘X’ that should last about a week and take us most of the way back up to point ‘V’.

This pattern is still providing a very good roadmap in real time of what to expect. It doesn’t catch every single swing, but has been a very useful tool in providing the general direction of the PM stocks.

Remember – according to the fractal, next week should be up, and then the week after that should be another big drop. Cheers!