We have come to yet another metals update wherein I have nothing new to offer. The metals have simply been providing us with a high level consolidation and would still look best with a [c] wave decline.
The one thing I did note yesterday was something I discuss every now and then regarding b-waves. When the prior rally comes up short of the ideal target, as we did in silver, we often see the b-wave of the ensuing corrective structure come back to strike that target. And, it looks like that is what we have seen in silver over the last day or so.
Moreover, if you look at the silver weekly chart, you will see that we are hitting our head on the downtrend channel which has kept us in check for quite some time. Again, I think it is reasonable to expect some downside action before we are going to break out through that resistance.
But, overall, all the charts would really look best with a [c] wave decline. Moreover, we really need the daily technicals to re-set to support the next rally we want to see. While GDX is trying to make its wave down to its support target, GLD is still well off the pace.
So, for now, I cannot say that I am expecting an impending break out in the current posture. Of course, the metals will do as they wish, as there is a significant amount of built up energy after a 2+ year correction. So, clearly, this is not something I want to outright short. But, at the same time, I am still patiently awaiting a low risk, high probability long set up for which I can add some aggressive long side positions. I will continue to wait until the market provides it to me. And, if it takes the lesser likely path of a direct break out, then I will ride my regular long positions until the market provides me the low-risk, high probability entry I seek for aggressive positions.