“Time is more important than price. When time is up; price will reverse”. – W. D. Gann
Based on the length of the previous corrective upswing in the GDXJ, the time for this upswing is UP. That’s what I marked with the blue, dashed lines and the black dashed lines.
When we measure the size of the entire correction, we get the target price for the current rally slightly below today’s intraday high, and when we measure the analogy based on the price move that we saw after the first daily rally (blue line), we get the target price for the current rally a bit above today’s intraday high.
On average, today’s session perfectly fits the analogy in both ways.
Of course, that’s not the only thing pointing to the bearish case in the following weeks. I described many of such reasons in my recent Gold Trading Alerts, and I don’t want to repeat all this today (likely topping stocks given the DeepSeek shocker; bottoming USD Index, topping pattern in copper, double-top with the higher second top in bitcoin and gold futures, and more), but I do want to comment on one new confirmation.
Namely, silver just outperformed gold on a short-term basis. The GLD ETF didn’t move to last week’s high (not even close), but the SLV ETF surpassed the respective high.
This is something that we saw at the tops or right before them multiple times.
Consequently, the top might be in (and if not, it’s likely at hand).
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Thank you.
Przemyslaw K. Radomski, CFA
Founder, Editor-in-chief