[GDX] update

In the backlink I warned that overhead resistance might be signalling that B of 5 was unfolding.




Actual is below and both red and blue paths remain primary and secondary as above even if they are not drawn in below.



Zooming in on the above we can see how that mid channel approach might terminate.  If we assume that the move up from what is marked as lime green A below into red 1 is motive then we can envision a 3-3-5 expanded flat correction that would end likely tomorrow as shown below into red 2.  In order for this count to remain valid, the wave must stay above green "a"!!  That is your stop because it that is taken out then the bottom of the channel WITH THROW UNDER is the next likely target.

Of course, a break out above the top down sloping blue rail negates the bear case and says that the next big wave up in M+M has likely begun.

If we go lower tomorrow as shown in 5 waves then I will be buying into NUGT at the end of the day very heavily and with tight stops.  If it then does a 3 wave bounce which cannot break much past blue 4 then we have to assume that this is 2 of C of 5 and dump it like a bad habit.  If this hits bottom rail from here it's a full 30% of your capital evaporated.  This is where the use of stops and patience pays off.