Tuesday, December 18, 2012

Silver/SLV update and GDX etf

Silver/SLV has sold off this morning but has held at key support of $30.53.

My Elliottwave count still indicates that we need a Y wave above $33.10 before we see a final sell-off near $28-$29. RSI and MACD are severely oversold and also indicate a short-term low.

GDX (Gold Miners ETF): short-term, I believe the precious metals complex is bottoming and the GDX etf appears to be sending confirmation of such. Notice that we have 3 lows at the low $45 level and its appears to be an inverted head & shoulders formation. I expect GDX will rally to near the $48.50 level (which is also where downtrend resistance lies) and FAIL there. Thereafter, I do expect another sell-off to new lows... probably after New Year's.

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