When I look at all the different charts I track in the metals complex, what is interesting is that they seem to be at varying degrees of their specific trend. Why that may make a difference, as I explained in my live video this morning, is that if we do complete a i-ii as shown on the silver charts in the coming month or two, then we may have a wonderful opportunity for a catch up move in silver later this year, since it has lagged the other charts.
In the meantime, I am viewing the current pullback as wave 4 of wave i, in the leading diagonal for silver. It is this wave i that I think can complete in the coming weeks and then provide us with a wave ii pullback, to set up that catch-up move I think we may see later this year.
As far as GLD, I am assuming this is wave 4 within wave iii, as you can see on the attached chart. Ideally, we should be holding the pivot outlined on the chart, and looking for the next 5-wave rally off this support. Our next target is the 202-207 region to complete wave 5 of iii.
And, in GDX, I am also assuming this is wave 4 of its wave [iii], and we may even have an initial 5-wave move up off today’s low. So, I will be tracking this carefully in the coming days to make sure we stay on target for our next move higher. The ideal next target is the 44-45 region.
In summary, I am keeping this update simple, as it “should” be rather simple going forward. The metals seem to be well within a strong trend higher, and I am looking for the set up for the next move higher.