There really is not much more to say about the metals since my last update, as they have just been moving sideways. So, I am going to make this week’s report rather simple.
The bottom line is that as long as the metals remain below the rally high struck on the 7th in GDX and silver and the 10th in GLD, we still have a set up to take us a bit lower to complete their respective 2nd waves.
This means that silver has a better chance now of striking that 17-17.10 region if we are able to see further downside follow through.
Any alternative bullish potential MUST initially break out over those respect highs noted above. Moreover, silver also needs further confirmation in a break out over 18.33 to provide us strong confirmation that the next major rally phase has begun.
But, for as long as last week’s high holds in these charts, it is reasonable to assume one more bout of weakness will be seen.