The short-term Elliott Wave outlook for Gold Miners ETF (GDX) suggests the corrective cycle from the August 26 high has already ended as a seven-swing structure. From that peak, wave (W) declined to $91.19. A corrective rally in wave (X) then reached $98.36. Selling pressure resumed afterward, with wave (Y) extending lower to $78.93. This decline completed wave ((W)) at a higher degree as 45 minutes chart below shows. As a result, GDX should now be in the early stages of a larger corrective recovery. The structure favors at least a three-wave rally against the decline from the August high.
The advance from the $78.93 low is unfolding as an impulsive sequence. Wave 1 ended at $81.60. Wave 2 then pulled back and finished at $79.08. From there, the ETF resumed its climb and extended higher in wave 3. This leg appears close to completion. Once wave 3 ends, GDX should enter a wave 4 pullback. Afterward, the ETF is expected to make one more push higher in wave 5. That move should complete wave (A) of the ongoing recovery.
Following the completion of wave (A), a three-wave retracement in wave (B) is expected. This correction should unwind part of the advance from the recent low. However, the decline should remain above $78.93. Holding this level would keep the bullish structure intact. It would also support another advance in wave (C) and complete the larger corrective pattern.
In the near term, $78.93 remains the key pivot. As long as this level holds, buyers should continue to support pullbacks. Corrective dips in three or seven swings are expected to attract demand. Therefore, the near-term outlook remains constructive. Additional upside should follow before the broader recovery sequence reaches completion.
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