Silver update

It has been a while since I posted any metals analysis in this blog but, given recent developments, I believe an update is in order.

From December to February, I had posited that silver was likely bottoming with a final diagonal (a-b-c-d-e) and would likely stabilize above $26.10 and begin its explosive FINAL Wave 5 rally thereafter. Given recent developments, however, I believe that I may have been premature in calling for a final low at $26.10... and I am now expecting that silver will experience one more new low (around $22?) in the coming months, before Wave 5 commences.

My reasons for this altered prediction are two-fold:

1) The wave count for silver now appears to preclude a final diagonal and is more likely Wave (A) of a Wave Y double zig-zag (see chart below). The 7 waves down from the $35.44 high indicate that Wave (A) completed at (e) and that we are now in an expanded flat that should rally back up around $30 before Wave (C) of the double zig-zag continues downward to fresh lows.

 and...

2) The wave count for Silver Wheaton indicates that the recent decline from $41.04 is in 5 waves, which indicates the completion of Wave (A) in a Wave Y double zig-zag. I now expect SLW to rally sharply upwards to the $32.50-$33 level in a Wave (B) rally and then to decline to a final Wave (C) level below the 2012 low of $22.64.

Gold & Silver update: key Wave 4 bottoms formed??

Based on the technical readings below, I believe that both gold and silver have put in their key Wave 4 lows and that an explosive Wave 5 is underway. Granted, this move may take 6-12 months to fully transpire but it is a significant development and a unique opportunity to profit from an explosive move.

GOLD

SILVER

1/28: GLD & SLV update

It has been a few weeks since my last update and I would like to review the technicals on gold and silver. As you can see below, we have not quite reached trendline resistance on gold & silver just yet (marked as Wave D on both charts) but I still believe we are likely to make an attack on those levels before we make a final low set in (marked Wave e on both charts).

1/11: GLD & SLV update

Gold (GLD) and Silver (SLV) update:

There has been a concerted attack on the precious metals this morning but I strongly suspect that the metals are bottoming here and will soon reverse higher. My targets for both metals is a Wave D high near their trendline resistance...

1/11: SLW update

SLW update:

Silver Wheaton has been consolidating just below the short-term resistance trendline this morning and I believe this is a good sign that energy is re-building for the next burst up towards the Wave c/X level around the $40.

1/10: SLW rallying & at critical resistance/breakout level

SLW update:

Silver Wheaton is at critical trendline resistance and is showing very positive strength.

I believe the stock will need to consolidate for the rest of the day before it can muster up the energy to break through this resistance trendline, however, once this trendline is breached/captured I think SLW will thrust towards the red resistance trendline very quickly (next week).

Gold and silver, too, are showing positive technical indications of a continued short-term rally, however, it is very important to remember that this rally in SLW - and the precious metals complex in general - is in the context of a continuing corrective pattern and that there should be one more additional sell-off in February that will present a wonderful buying opportunity for a powerful metals rally for the remainder of 2013.

1/8: GDX update - ready to launch?

GDX (Gold Miners ETF) has built an extended and powerful RAMP/trendline to launch from...

This appears to confirm that a sharp short-term rally in the precious metals is imminent.