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Gold, Silver, & Oil: Price Reaction Playbook

email: admin@captainewave.com
website: www.captainewave.com

Feb 11, 2021

Crude Oil:

We continue to rally sharply higher in wave (iii), which the following longer term projected endpoint:

(iii) = 1.618(i) = 93.96. 

It now looks like wave $i$ of (iii) is extending higher. Crude is approaching a major multi-year downtrend line that connects 147.27, 112.24, 107.68, 76.90 and 65.65.

This line currently is at about 60/65, so we expect crude to keep rallying to that line and that could be where wave $i$ will ends.

After wave $i$ ends we expect a wave $ii$ correction that should retrace between 50 to 61.8% of the entire wave $i$ rally.  

Active Positions: Long crude, with put options as a stop! Long Suncor!


Short Term Update:

We continue to work on our wave (ii) drop that has the following retracement levels:

50% = 20.78;

61.8% = 18.62.

Within wave (ii), wave -b- of (i) of our irregular type correction ended at the 30.35 high. We are now dropping sharply in wave -c-, as shown on our daily silver chart.

Our minimum target for the end of wave -c- is the wave -a- low of 21.81, but we expect we should drop lower into our retracement level for all of wave (ii) which is:

50% = 20.78

61.8% = 18.62.

Active Positions: Long, with put options as a stop. Adding to long positions at 19.50!


We continue to believe that all of wave ^ii^ is not complete at the 1767.20 low, that has the following retracement levels:

50% = 1764.40;

61.8% = 1690.40.

It looks like wave ^ii^ is a double 3 wave corrective pattern, as shown on our daily gold chart, with our second wave (b) being complete at the 1962.50 high.

We are now falling in our second wave (c) which has minimum target of 1767.20, but likely lower into our noted retracement noted above.

We have a projection for the end of wave (c) as:

(c) = (a) = 1763.60.

We are also watching for a potential ending diagonal triangle formation within wave (c) as shown on our daily chart. The diagonal triangle is bounded by our blue trendlines.

If this formation is valid then we should expect gold to drop one more time below at least 1784.60 to complete the pattern, before we move sharply higher as wave ^ii^ will be complete.

A rally above the 1878.90 high now would eliminate this pattern.

Long-term, our current projected endpoint for all of wave *iii* is:

*iii* = 1.618*i* = 2306.30.

We have higher projections also.

Active Positions: We are long, with put options as stops. Adding to longs at 1735.00!

Free Offer For 321Gold Readers: Please send me an Email to admin@captainewave.com and I’ll send you our free XAU & HUI gold stocks report. Included is a bonus update on oil stock Suncor!



Feb 11, 2021
captainewave & Crew!
email: admin@captainewave.com
website: www.captainewave.com

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