Gold, Silver & GDX Wave Counts
Dec 6, 2019
The next US jobs report is Friday, November 6! Gold often has wild volatility (although less recently) around the release of these reports, and then it shoots higher in the days that follow.
Tomorrow could mark the “official” start of gold wave *v*, which targets the $1700 area!
On our intraday chart, the drop from 1489.90 to the current low of 1477.10 looks like a 3wave pattern, which is bullish.
Wave *iv* is likely now complete at the 1446.30 low.
In the very bullish case, we also need to consider the possibility that wave *iii* is going to extend… and in this case wave !i! of *iii* ended at 1566.20 and all of wave !ii! at the 1446.30.
If wave *iv* is complete gold will start to rally sharply in wave *v*, which has an initial target of 1704.40.
We still need a sharp break and close above red downtrend line that is shown on the daily gold chart.
It has already happened with many gold stocks, and that’s a very good sign of what lies ahead.
Trading Recommendation: Long gold. Use puts as stops.
Active Positions: We are long, with puts as stops!
Unlike gold, silver bullion has struggled… while silver stocks like our SSR Mining position are nicely higher!
Within our extending wave .iii. rally, it looks like wave ^ii^ could now be complete at the 16.61 low. The pattern included a bearish triangle just like in gold.
We are now well within our retracement levels for all of wave ^ii^ which are:
50% = 17.01
61.8% = 16.36
Once wave ^ii^ is now complete we should expect a very sharp rally in wave ^iii^. We will provide our initial projections for the end of wave ^iii^, when we are sure that all of wave ^ii^ is complete.
Trading Recommendation: Long silver. Use a put as a stop.
Active Positions: We are long, with puts as stops!
It looks like wave (iv) or -iv- are complete at the 26.14 low and that we have started to rally higher in either wave (v) or wave -v-.
We predicted a mild drop to test the breakout that we predicted, and that is now in play.
With our current gold count it could be possible that wave (iii) in the GDX is still underway, as shown on the 60 Min GDX chart. In this case our target for the end of wave (iii) is:
(iii) = 2.618(i) = 36.42
Longer term our first projection for the end of wave 3 is:
3 = 1.618(1) = 48.95
Our current thinking for key gold stocks:
Kinross: We are now rallying in wave (iii), which has initial projection of: 9.68.
Barrick: We are now rallying in wave (iii) rally, which has an initial projection of: 37.10.
Trading Recommendation: We continue to suggest buying all of the above gold stocks and indices, for a long-term hold.
Active Positions: We are long the GDX, ABX, KGC, NEM, SSR, 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 a nice sample of our next leveraged ETF trade alerts, for gold stocks and the stock market!
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