Don't Get Too Excited Just Yet

I know everyone is seeing the move up in GDX, and is likely getting quite excited.  But, I just wanted to send out a quick note that it is still a bit premature to get excited yet.  

While we are certainly expecting a significant bottom to be struck soon in the metals complex, I cannot say that the two leaders - NEM and GOLD - have confirmed that a bottom has been struck.  In fact, with the extension down in GOLD of late, I really don't see a reliable bottom as having been struck just yet. 

Moreover, if you zoom out, you would see this is just a blip on the daily chart.  So, for now, while I am expecting a major bottom to be struck in the complex soon, I am not yet convinced that this is the start of the next bullish phase just yet.   I simply need more evidence.

GDXdaily
GDXdaily
Avi Gilburt is founder of ElliottWaveTrader.net.