Junior Gold Miners ETF (GDXJ) Breaks Correction, Targets Higher Levels

The VanEck Junior Gold Miners ETF (GDXJ) is a specialty equity fund that tracks the MVIS® Global Junior Gold Miners Index, offering investors exposure to smaller-cap gold mining companies worldwide. It is widely used as a leveraged play on gold prices due to the higher volatility and growth potential of junior miners.

GDXJ Monthly Elliott Wave View

The monthly chart of GDXJ indicates that the ETF established a major bottom in 2016 at $16.87. From that low, price advanced in a nesting impulse structure. Wave (I) terminated at $52.50, followed by a corrective decline in wave (II) to $19.52. The ETF then nested higher, with wave I of (III) ending at $65.95. Wve II of (III) pulled back to $25.80. Wave III of (III) extended sharply to $157.49, while the subsequent wave IV of (III) correction is proposed complete at $95.13.

For confirmation, GDXJ must break above the prior wave III of (III) peak at $157.49 to eliminate the risk of a double correction in wave IV. Assuming this occurs, the ETF is expected to advance in wave V, completing the larger wave (III), before undergoing a wave (IV) pullback and resuming higher again. As long as price remains above the 2016 low at $16.87, the broader outlook favors continued upside.

GDXJ Daily Elliott Wave View

The Daily Elliott Wave chart of GDXJ provides a detailed view of the subdivisions within wave (III). Wave II of (III) concluded at $25.98, while wave III of (III) peaked at $157.49. Wave III unfolded as a classic impulse in lesser-degree waves ((1))–((2))–((3))–((4))–((5)). The subsequent wave IV correction ended at $95.13, and the ETF has since resumed its rally. Looking ahead, GDXJ is expected to extend higher in wave V, completing the larger wave (III). A break below $95. 13 would imply that wave IV is evolving into a double correction. Support will then likely to emerge at the next extreme area in either a 3- or 7-swing sequence. Importantly, the broader bullish outlook remains valid as long as the pivot low at $25.98 holds.

GDXJ 4 Hour Elliott Wave View

The 4‑hour Elliott Wave chart of GDXJ highlights provides a detailed subdivision of the recent wave IV pullback. Internally, wave IV unfolded as a zigzag structure. From the wave III peak, wave ((A)) ended at $127.79 and wave ((B)) rebounded to $142.40. Wave ((C)) declined to $95.13, completing wave IV. As long as price holds above $95.13, the ETF is expected to extend higher. A break below this level, however, would indicate that wave IV is evolving into a double correction.

Source: https://elliottwave-forecast.c...