by Avi Gilburt, ElliottWaveTrader.net
First published Sat Apr 15 for members of ElliottWaveTrader.net: With the break-out over the prior week’s high, we now have structures in gold and silver off the March lows which can be considered strongly impulsive. And, as I have noted many times in the past, if there is a reasonable bullish interpretation to be seen in the metals complex, I will certainly be adopting that as my primary perspective.
However, while GLD and silver can be counted as just completing their 5 wave structures, I want to warn anyone who is going to attempt to trade downside that we are setting up in the heart of a 3rdwave. That being the case, there is potential for the market to continue to melt up in the heart of that 3rd wave, which is actually the position we see in the GDX currently.
Silver seems to be chart that is most suggestive of needing a pullback in a wave 2. We just barely held support last week in a 4th wave, and made a higher high in this past week’s action, which has now given us 5 waves up off the March lows. That strongly suggests that silver “should” see a pullback, which I am counting as a wave 2.