For the mid term, volume and On Balance Volume this week give an important signal. For the short term, Friday’s candlestick gives a contradictory signal. The main Elliott wave count remains the same.
An upwards breakout from a small Elliott wave triangle or a classic pennant pattern was expected, and this is what has happened.
Candlestick analysis is used today to determine if the target remains likely.
Another small range inside day sees the Elliott wave counts very slightly adjusted, but this makes little difference to the short term expectation and no difference to the mid or long term expectation. The breakout direction is still expected to be the same.
Price remains range bound. A breakout should come tomorrow or early next week.
On Balance Volume shall be watched carefully; it may give a signal prior to a breakout.
With New York closed because of Labor Day, the markets were quiet.
A very small range day closes as a small inside doji candlestick, which does not alter this analysis.
For GDX the target remains the same and resistance continues to hold as expected.
The short term Elliott wave structure and strong volume for Friday indicate the direction for next week.
Another inside day completes a Shooting Star candlestick pattern. The implications of this pattern today are evaluated in context of recent price movement.
Members’ attention today is directed to the long term picture for GDX, which is significant for this market.
Technical analysis at the end of this week focuses on candlestick patterns along with a very few key indicators. A strong pattern at the end of the week suggests the direction for next week for Gold.
An outside day closes green, and the balance of volume is upwards. This fits expectations for the main Elliott wave count.