Well folks, GDX has taken out the December 11th high with authority and is filling the October 30th gap down. All of this came off of an abbreviated ‘C’ leg down of an A-B-C bull correction, and personally I am happy to see a 5th wave down scenario negated because that would have increased the odds of more or longer lasting bearish activity than an A-B-C correction.
To review, our target is new cycle highs for GDX. Side note: Sometimes RSI/MACD divergence do work. That divergence at ‘C’ was the signal, proven in hindsight.
To get a bigger picture angle, let’s review our trusty HUI weekly and monthly charts.
HUI weekly sports a false breakdown (abbreviated ‘C’ on the daily) and a clear hold of support and hold of the breakout from the long corrective channel. RSI and MACD have gone positive again.
HUI monthly is clearly bullish, as it actually has been all along, especially after the false break and recovery back above the correction channel.
Next target is to take out the 2020 high of 373, which means taking out the next level of significant resistance. So we could get some volatility up there. But this has been and remains a sweet looking chart on the big picture. Ultimate target is 500 over the coming year or two. But that does not mean it will stop there.
I appears we are in the 5th wave of the bull market. These waves have tended to take years to complete and we’ve been in this one for a year now.
