View: GDX (Gold Miners ETF ) | The wave trading

SOMETHING MORE THAN AN OVERSOLD BOUNCE IS IN THE CARDS ?

This is a brief post since I have not yet analyzed properly the EWP but there is a chance of a large rebound due to:

Extremely oversold momentum indicators both in the weekly and daily time frame Price has reached the 0.618 retracement of the October 2008 – September 2011 up leg Potential weekly hammer

Lets focus the analysis to the current down leg off the September 21 high. I am sure that there are several valid ways to count this down leg, maybe it could even be over having established a wave (A) or it could be unfolding a Double Zig Zag in which case the wave (A) of the second Zig Zag could be in place.

For the time being I am going to consider the latter option, in which case if a bottom is in place a wave (B) could reach the range 40.69-43-87

Yesterday´s bullish engulfing candlestick could be the first step of a large countertrend  rebound.