by Avi Gilburt, ElliottWaveTrader.net
First published Sat Feb 25 for members of ElliottWaveTrader.net: As the GLD and silver continued in their paths higher this week, there is no suggestion from price action that they have met the top to this current rally. However, the lagging in the miner complex certainly has made many heads turn.
Now, I have always preached “each chart on its own,” and this is a great example of why. You see, until this past week, silver was leading the complex, with the GDX not far behind it, and GLD bringing up the rear. This “leader-board” is purely based upon the Fibonacci extensions which they have each struck during this last multi-month rally.
With silver breaking out through 18.20, it has now moved up to its 1.236 extension, whereas the GLD has only slightly moved through its .764 extension. Yet, the GDX still consolidating below its .764 extension. But, the fact that GDX has still not been able to break through its resistance has left it in a position where it can still pullback down towards the 21.50-22 region, but, clearly, that would not be my preference at this time.