Nothing Much To Do

With GDX and GLD bottoming exactly where they “should” have, the rally seems to be back in progress.  But, I must warn you that I really do not have a clear 5 waves up in gold at this time. 

So, let me tell you what I need to see to become an uber bull and go back to buying every dip.

If gold can make a higher high, and then pullback correctively and then take out that initial higher high, then the probabilities begin to swing in its favor to take out the resistance noted on our 8 minute chart, and propel it to the 143/45 region.  That would place it strongly in the green count I have on my daily chat, and would have me looking to buy a wave iv pullback, as seen on the daily chart.

However, should we fail to achieve a higher high, or should we rally to a higher high and then break back down below the low struck this week, that would strongly suggest that diagonal count is likely in play.

So, until I am able to take that diagonal count off the table with the action I noted above, leverage is not something I intend to use in the market at this time. 

Moreover, silver has yet been able to come alive.  But, I do have to note that at this time, I can count a reasonable [i][ii], i-ii off its lows, which still gives us opportunity to see an explosive move higher in silver which will clearly get everyone more appropriately comfortable with this larger bull market move in metals. 

So, while many of you are requesting updates every time you see gold move another dollar, I just want to let you know that there is not much more insight I can provide than what I have noted above.  Right now, the market has to decide between the standard impulsive structure presented in green on my daily charts – which needs an explosive move higher in the coming two weeks – or we will morph into an overlapping diagonal structure which will be a bit more difficult to manage, but will still be a bullish for the coming months.  So, for now, there is not much to do.

Lastly, as I have mentioned in my Live Video, I really am going to go on auto-pilot to some extent, especially when I look at charts like Barrick (GOLD).  You see, this set up is pointing to the 27 region as the next major target, and how the market handles itself from there will be a big key to how we view the market over the next 12-18 months, and potentially even beyond.  So, for now, as noted before, there really is nothing much to do.

GDX-8min
GDX-8min
GDXdaily
GDXdaily
GLD 8min
GLD 8min
GLD-daily
GLD-daily
silver144min
silver144min
GOLD
GOLD
Avi Gilburt is founder of ElliottWaveTrader.net.