Will The Pullback Hold?

After a 5-wave rally, it is expected that we see a pullback. And, that is where we currently reside within the metals complex as per our expectations.

As I write this update, both GDX and gold are within their respective 2^nd wave pullback targets, and can still see a bit lower before they complete.

But, silver has diverged a bit thus far. In fact, silver struck the top of its support box and has since rallied in what may be a 5-wave structure for wave i. And, since the overnight high struck, we can consider this as a i-ii structure within the next wave already. Of course, we can still see further downside making the after hours high a b-wave, and this decline a c-wave, as shown with the micro alternative count.

Yes, there are still several paths this can travel. But, the one commonality is that we will want to see this week’s high taken out with an impulsive rally to strongly suggest that a low is in place. So, there is not much for me to add to this analysis as we have to patiently watch how the market handles this pullback. And, as long as the support boxes hold as support, then I am looking up. A break of these boxes will strongly warn us that lower lows may yet still be in store.