First published on Wednesday Dec 6 for members: The ‘sentiment’ in the metals complex now ranges from indifferent to very bearish. In fact, I am seeing many just posting how they are just fed up with the metals complex, and just want to move on. And, that is often the time when fireworks are seen. So, I think it is prudent that we remain on our toes right now, just as many seem to giving up.
With silver’s direct drop lower this week, along with the potential that the GDX may hold its 21 region support, we may be able to maintain a more immediate bullish perspective. However, I still want to note that it will still take several months until the next break out set up is ready to go. But, what I am about to present is the best-case scenario we can view on the charts at this time. And, they need some serious confirmation in the coming weeks.
First, I will go through the more immediate bullish potentials, as presented in silver, GDX and GLD. Then I will discuss the more bearish potential, and what can trigger that.
Starting with silver, the more direct drop this week in silver can actually complete all of wave (2) a bit sooner than I had initially expected. This is a very reasonable wave count, as long as we hold over the 15.60 level, where w=y.
This post was published at GoldSeek on Friday, 8 December 2017.