Metals Got A Rest – But, No Downside Yet

We came into this week with the metals getting a rest with sideways action, but no downside has yet been seen. And, this was followed by another extension today. And, yes, there can still be one more small move higher before this wave completes, but it is still quite extended. Moreover, I still think it is quite reasonable to expect some downside in the coming week.

What is interesting is that the more this extends in just this move alone, the greater the probabilities swing towards the bottom being in place already. What is also interesting is that gold and GDX have taken out their initial resistances, whereas silver still has not.

Ultimately, there is not a lot I can add to my prior analysis. I still think it is reasonable to expect a pullback imminently. That pullback will be a wave (iv) in GDX and a (b) wave in both silver and gold if the bottom has recently been struck. But, as of now, I still cannot completely rule out a lower low, as I still need to see a clearer (iv) (v) take shape in GDX in the coming weeks to turn into an uber-bull for the coming months.