Ready For A Rally?

It would seem we have attained our targets for this pullback, and we may now have an initial indication that we are ready to rally again.

As I outlined in silver, we have now dropped down to our support box for wave 4, in an a-b-c corrective fashion.  Moreover, we also got the 5th wave of the c-wave with the positive divergence I like to see on the 144-minute silver chart.  And, once we get back over 25.25, I think we will be starting our wave 5 in the leading diagonal I have been tracking for silver. But, keep in mind, wave 5 will take shape as an [a][b][c] structure, since all waves within a diagonal take shape with 3-wave structures.  So, I am not expecting an impulsive move up off these lows to be evident.

However, in GDX, we have also reached a point of [a]=[c], along with appropriate divergences.  We also now have a potential [i][ii] structure off those lows which would point us up towards the 39.50 region to complete wave i of 5 of [iii], which should ultimately take us north of 45.  I would actually prefer to see it take us to the 47-50 region over the coming months.

As far as GLD is concerned, we came down to the bottom of our pivot for wave 4, and we seem to have a reasonable micro 5 wave rally begun off that low.  

Overall, I am expecting today’s low to hold, and that we can see bigger signals over the coming week of the next major rally taking hold.

GDX8min
GDX8min
GLDdaily
GLDdaily
silver144min
silver144min
Avi Gilburt is founder of ElliottWaveTrader.net.