Almost Five Waves Up

As you can see from the attached silver and GDX charts, we almost have a full 5 waves up off the recent lows.  While the GLD is less clear, I am going to assume it is in the same posture as the rest of the market, since it is following through on its larger bullish structure on its daily chart as well.

So, this update is rather simple.  If the GDX can push higher directly into the blue box, then we have a completed 5 waves up for a larger wave (i) of wave (3) of 1 as you see on the daily chart.  That means we will likely see a pullback in waves (ii) into next week.  But, should we pullback correctively in wave (ii), and then rally over the top of wave (i) in the coming weeks, I will be looking for a strong rally akin to what was seen back in early 2016. 

As far as silver is concerned, it, too, looks like it has only completed 3 waves off its lows.  So, I will await its completion of a 5 wave structure, followed by a 3 wave pullback, and then rally over the top of the initial 5 waves before I become aggressively bullish.

So, for now, the market is playing out as it should in the larger bullish posture.  But, the market MUST follow through on this pattern over the coming weeks to retain this stronger immediate bullish potential.

GDX-8min
GDX-8min
GDXdaily
GDXdaily
silver144min
silver144min
GLDdaily
GLDdaily
Avi Gilburt is founder of ElliottWaveTrader.net.