Based on my prediction that Gold (and Silver) are due for one last SHARP decline in the coming weeks, I am taking a SHORT position in WPM.
Here's the PUT: WPM JAN 10, 2020 $27 put
Currently offered around $0.16
My target for WPM in the coming weeks is an attack on the $24 level. If correct, this put would reach $3.00
That being said, you could short...
My Elliottwave analysis of the S&P 500 indicates that we might be finishing up wave (b) of an expanded flat that will complete wave 4.
I have come to this analysis because of what looks like a triangle formation in the middle of this latest rally, which indicates a corrective (b) wave.
If correct, a strong selloff is coming imminently.
Well, although I had seen the possibility that would gold would not rally to the highs before going lower, I didn't give it enough of a probability.
Gold, in fact, has slid lower and is not showing much life and so I've reassessed the wave count to this W-X-Y.
Three waves down (W), then a sideways triangle (X), and now we're in the midst of (Y).
Y will likely...
To be very candid, the snap back rally that I had envisioned has not yet materialized and it makes me question my previous wave count.
Quite frankly, if gold doesn't have a strong move today over $1,500 then its not likely to happen.
The first encouraging sign would be gold touching $1,481...
IF we are still in an a-b-c rally, then we've just set the b wave.
C wave coming??
Not that the a rally was only 2 trading sessions (from Oct. 1 - Oct. 3), meaning that the move higher could be swift and strong!
Well, its been a challenging few days for metals bulls the past few sessions but I believe we have encouraging signs, as indicated by SILVER.
As you can see, silver has come back above the critical channel support line.
I still see a solid push coming in the next several trading sessions to form Wave X.
Cross your fingers metals bulls.
OK gang, the gold triangle that I posted earlier this morning has clearly been invalidated but I still maintain that we're going to attack the highs next week.
I refer you back to the 7-wave move off the Oct. 4 lows. This was not impulsive and indicates that there is one more high coming.
Hold on to your long and average down if you can.
And cross your fingers!
If gold is just finishing its triangle continuation pattern and ready to move higher, then NEM is a great buy!
Any options in the $39-$40 level expiring next week should do excellent, if that is the case.
I was a bit premature in predicting the next GOLD rally but, as you can see, we have now hit 2 critical support trendlines:
1) the mid-channel downtrend support line (dashed green line); and
2) the rising channel trendline (purple lines)
Now its make or break time for GOLD!
My long term projection (see previous post on Crude this past weekend) is that we are in have been in a sideways triangle ever since the collapse during the financial crisis. My wave analysis is that we're working on the (c) wave, which will likely top in the next year or so.
In the short-term, I believe we should be completing the B wave of this move...
I wanted to take a moment to show why I don't believe that GOLD is ready to breakout into new highs just yet, and why we are more likely to see further consolidation to the downside after a coming retest of the $1,556 highs.
For all of you who are well-versed on Elliottwave principles, you know that an impulse wave can only be either 5 waves or 9...