Hard To Be Bearish - But, Can Still See Another Drop

With the downside set-up I noted yesterday, and follow through this morning, the metals certainly had a chance to provide us with a bit of a deeper pullback today.  However, it seems as though buyers stepped in to avert that.  And, with so doing, the best I can come up with for further declines is an ending diagonal scenario for a deeper (c) wave of (ii).

But, as we look at silver, it has done everything it can to prove its bullish intent, other than breaking out through 18.20, which I assume will be next.  We have broken through each down trend line, consolidated over it, and then continued higher.  Lately, we broken out through the last one in yellow, and have been consolidating over it in a very corrective structure.  While we MAY still see a c-wave down that can test our support region on the chart, if we move through 18.20 before that occurs, we should not have to look back again, as we move to 19, on our way up towards the 22 region.

So, while we had a set-up for a deeper pullback, the general structure we are seeing now is making it less likely such a pullback may be seen.  But, until we actually get the break out over the last highs, stay on your toes as we all know this complex can be quite volatile.

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