Back on February 2, following the sharp decline in , we warned our members that the market was entering a higher-degree corrective phase visible on both the monthly and daily charts. At the time, the focus was on the possibility of a larger wave correction developing before the next major impulsive move higher.
Since then, we have continued tracking the decline and monitoring the potential reversal structure through the Elliott Wave perspective. The 4-hour charts below show how we have been following the internal development of the corrective ABC pattern and identifying the areas where a potential trend reversal could emerge. We also shared free charts back on February 05 and later on March 13.
Looking at the bigger picture, gold and gold miners are now approaching important support zones that could define the next major move. The weekly chart of the Gold Miners ETF () highlights a key area where wave 4 could potentially find support before the next impulsive advance.
Gold Miners ETF (GDX) is approaching an attractive support area for wave 4 around the 70–68 region, or potentially slightly lower. From this zone, we may see a bullish resumption into wave 5. However, bullish confirmation would only come with a break back above the 90 level.
GDX Weekly Chart
Meanwhile, on the weekly timeframe, gold () continues to trade within a higher-degree wave 4 correction, which could be slowly approaching completion this year. The ideal support zone remains around the 3900–3200 area, where buyers could step in and potentially resume the larger wave 5 advance.
The current correction has been developing as expected, and the next few months could become increasingly important as gold approaches these key technical levels. A successful completion of the corrective structure could open the door for the next major upside phase.
