Gold Market: An Expanding Triangle
Sep 3, 2020
Wave ^iv^ continues to develop with the following retracement levels:
23.6% = 1959.50;
38.2% = 1886.20.
As you know triangles like to extend and expand, and our graphically picture is just that.
One wave option is that wave ^iv^ is going to become a bullish triangle, with the lowest point within that formation being the 1874.20 low.
This is shown graphically on the chart.
Intraday, our condensed triangle is expanding and extending, as we could be working on the final leg of that formation.
The overnight low of 1961.60 has satisfied the minimum requirements for our condensed bullish triangle to be complete.
If that is the case we should expect a sharp thrust higher in wave ^v^.
We think that our wave ^iv^ triangle still needs more time to develop, but from an Ewave analysis point of view it could already be complete.
Our initial projection for the end of all of wave ^v^ and all of wave *iii* is:
*iii* = 1.618*i* = 2306.30.
Active Positions: We are long, with puts as stops!
Wave -iv- continues to develop and has the following retracement levels:
23.6% = 26.29;
38.2% = 24.05.
We have now reached the 38.2% retracement level so we cannot rule the possibility that all of wave -iv- is now complete at the 23.58 low.
The other option is that wave -iv- is going to become a bullish triangle of which we have reached the lowest point of that formation at the 23.58 low, which we have shown graphically on the chart.
Like gold, it could also be possible that our wave -iv- bullish triangle is complete at the 26.57 low. If it is, then silver should thrust sharply higher in wave ^v^.
It would be very unlikely for the gold bullish triangle to be complete without the silver one…so we continue to believe both of these bullish triangles are still under development, with many weeks to go before their completion…
But we have been pleasantly surprised on previous occasions!
Active Positions: Long using a put as a stop!
We continue to correct in wave ^iv^, which has the following retracement levels:
23.6% = 38.21;
38.2% = 35.66.
We have shown a possible 3 wave corrective pattern on our 60minute GDX chart, with all of wave -a- ending at the 38.88 low. If that is the case we should now be rallying in wave -b-, which will then be followed by another drop in wave -c- to complete all of wave -iv-.
Wave -c- should drop at least back to the wave -a- low.
If this bullish triangle is complete or almost complete then the next big move in the GDX will be a sharp thrust higher wave ^v^.
Of course, this bullish triangle could also expand and extend.
We will likely be adopting the bullish triangle formation as our preferred count very soon.
Longer term first projection for the end of wave 3 is:
3 = 1.618 (1) = 47.20.
We suspect that wave 3 will likely extend higher then the above projection also, as gold is likely heading well above $5000/oz.
Active Positions: We remain long the GDX, ABX, KGC, NEM, SSRM, and TSX:XGD with no stops!!
Free Offer For 321Gold Readers: Please send me an Email to email@example.com and I’ll send you our free CDNX Roadmap To The Stars!” report. We highlight key CDNX wave counts and four individual miners we like to play the next wave higher!
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