Price Pattern Sentiment
Indications and Upcoming Expectations
When I review the various miner
charts, I will say that the GDXJ suggests that the complex can see
a lower low in the coming week, with silver providing a similar
potential. However, the GDX has developed in such a manner in which
we can consider the low on this drop to have completed. So,
unfortunately, I do not have clarity as to whether a lower low will
be seen in the complex in the coming week before the next rally
takes hold, since the shorter-term patterns disagree. But, if the
GDXJ is able to "impulsively" (an Elliott Wave term of art
referring to the structure of a market move) rally over 38.90, then
it would suggest the next major rally phase has potentially begun.
In GDX, that level is 23.30, our prior support.
Now, due to the strength of the
drop in silver, as well as some of the miner charts I follow, it
has opened the door to the potential that the market may
consolidate a bit longer than I had initially expected. This means
that as long as we remain below the recent highs struck in the
market a few weeks ago, we may develop more of a consolidation
before the next break out phase.
I also want to tell you that Dr.
Cari Bourette, of MarketMood.net, noted that she sees a major
change in sentiment for the metals complex in the coming week. She
stated that, based upon her proprietary indicators, "gold in the
coming week has the largest positive change in sentiment in over a
year!" So, the question is if this next major sentiment change will
finally be the beginning of the smaller degree 3rd wave rally we
have been expecting, or if it will just provide us with a
corrective rally, keeping us in this consolidation for a few more
weeks. The structure will likely provide the answers over the
coming two weeks.
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Sentiment Speaks article today Seeking Alpha - precious metals, Avi Gilbert
Posted by steve101 on 5th of Mar 2017 at 03:09 pm
Price Pattern Sentiment Indications and Upcoming Expectations
When I review the various miner charts, I will say that the GDXJ suggests that the complex can see a lower low in the coming week, with silver providing a similar potential. However, the GDX has developed in such a manner in which we can consider the low on this drop to have completed. So, unfortunately, I do not have clarity as to whether a lower low will be seen in the complex in the coming week before the next rally takes hold, since the shorter-term patterns disagree. But, if the GDXJ is able to "impulsively" (an Elliott Wave term of art referring to the structure of a market move) rally over 38.90, then it would suggest the next major rally phase has potentially begun. In GDX, that level is 23.30, our prior support.
Now, due to the strength of the drop in silver, as well as some of the miner charts I follow, it has opened the door to the potential that the market may consolidate a bit longer than I had initially expected. This means that as long as we remain below the recent highs struck in the market a few weeks ago, we may develop more of a consolidation before the next break out phase.
I also want to tell you that Dr. Cari Bourette, of MarketMood.net, noted that she sees a major change in sentiment for the metals complex in the coming week. She stated that, based upon her proprietary indicators, "gold in the coming week has the largest positive change in sentiment in over a year!" So, the question is if this next major sentiment change will finally be the beginning of the smaller degree 3rd wave rally we have been expecting, or if it will just provide us with a corrective rally, keeping us in this consolidation for a few more weeks. The structure will likely provide the answers over the coming two weeks.