Nothing has changed my perspective over the first half of this week that we are setting up another strong leg higher in the metals complex. Again, the GDX and GLD seem to be in the same wave degree, whereas silver seems to be one degree ahead.
Specifically, I believe that we are about to see the heart of the 3rd wave higher in GDX and GLD, whereas silver seems to be setting up for a 3rd wave in its wave (v) of 3 of iii. While the difference is not hugely significant, it does suggest that GLD and GDX have some catching up to do.
As you can see on the 8 minute GDX chart, my expectation is that we see a “standard” wave (ii) pullback, which should hold support within the blue box. Should this region hold as support, followed by a strong move over the top of wave (i), it points me to my wave 3 target on the daily chart in the 39-41 region. This also suggest that GLD can be headed to as high as the 142-145 region, and silver can even exceed the 23 level.