The markets are showing bearish patterns and potential trouble ahead, but gold and energy stocks are trading near all-time highs, indicating a potential breakout and run for gold miners with the upside for GDX to go back up to 40 or even 44.
“The markets have a much larger correction coming, with gold trading near all-time highs and energy stocks near all-time highs.”
Small cap stocks like the Russell 2000 and micro cap sector are showing bearish patterns, indicating potential trouble ahead for the market.
Gold miners are poised for a potential breakout and run, with upside for GDX to go back up to 40 or even 44.
It’s just a matter of time before gold resolves to the upside, along with silver and gold miners.
Looking at the monthly chart and considering Fibonacci extensions, the unprecedented high levels of gold futures indicate a strong pattern.
The target for the next rally could be around 2760-2750, which has been discussed for some time.
Gold prices could potentially reach $50-80 or higher in the future, depending on outlook and style.
Understanding market waves and knowing when to be defensive or move into something else is key to successful trading.