Metals Are Still Not Blowing The Lid Off


I wish I had something better to report, but we are not yet seeing the types of extensions I would want to see in silver on this current break out.   Maybe the next few days may provide more of what I wanted to see, but, thus far, this move higher is a bit underwhelming.  You see, if we really are trying to complete a solid 5-waves up off the recent lows, then we really should be targeting AT LEAST the 1.618 extension for the 3rd wave in the 24.46 region.  And, as we stand today, we are not even close.  But, again, maybe we will see more fireworks in the coming days or maybe a larger (i)(ii) may take shape in the coming week.  But, as it stands right now, it is a bit underwhelming.

Moreover, GLD seems to have dropped a bit deeper than I would have preferred during this current pullback.  And, it certainly puts a bit more risk into the structure and potential that we will complete 5 waves up off the recent lows.  But, as in silver, I am going to still give it some room over the coming week or two to give us some further bullish indications.

And, as far as GDX is concerned, well, we are trying to see if it can complete a leading diagonal off the recent lows.  Yet, please keep in mind that leading diagonals are not the strongest of trading/investing cues.   But, that is all the market is leaving us with at this time for bullish potential.    

In summary, I am still giving the market some room to prove a more bullish intent off the recent lows as we look towards the next week or so.  But, no doubt, there are some troubling micro-signs in the structure of silver and GLD at this time.  But, pressure still seems to remain to the upside for now, so I am simply going to follow the structure to see if we can get a completed 5-wave rally off the recent lows in all 3 charts.  Should we faulter in the coming weeks, then we see one more lower low before the rally I expect to take us through 2023.   

GDX8min
GDX8min
GDXdaily
GDXdaily
GLD 8min
GLD 8min
GLDdaily
GLDdaily
silver-8min
silver-8min
Silver-144min
Silver-144min
Avi Gilburt is founder of ElliottWaveTrader.net.