Silver
The Captain’s daily silver chart.
Analysis
Wave iii ended at the 121.67 and we are working on the assumption that all of wave iv is complete at the 54.77 low, with an internal wave structure as follows:
(a) = 78.93.
(b) = 92.23:
(c) = 64.09.
(x) = 96.44.
(a) = 60.99.
(b) = 89.39.
(c) = 54.77, to complete all of wave iv.
We should be moving higher in wave v and within wave v, we are still rallying in wave -i- of (i).
The other alternate is that only wave (a) of iv is complete at the 54.77 low and if that is the case then we are moving higher in wave (b). Wave iv could still become a bullish triangle, flat or irregular type correction.
The wave iv correction is rather deep, which could be suggesting that wave iii is still underway with an alternate count as follows:
- = 121.67.
- = 54.77.
- rally is underway
If our alternate count is correct then wave iii is heading to the $275/300 level!
Trading Recommendation: Go long PSLV:TSX and silver futures with puts as stops.
Active Positions: Long PSLV:TSX and silver futures with puts as stops!
GDX
The Captain’s 60minute GDX chart.
Analysis:
Within wave C, we are moving higher in an incomplete impulse fashion, as we continue to move higher in wave iii. Within wave iii, we completed wave (iii) at the 117.43 high and all of wave (iv) at the 69.75 low.
We have also now broken above our red downtrend line connecting 98.72 and 89.98, and are now moving higher in wave (v). Within wave (v) we are still moving higher in wave .i. of -i-.
After wave .i. ends we except a wave .ii. correction that retraces between 50 to 61.8% of the entire wave .i. rally.
The other option is that only wave -a- of (iv) is complete at the 69.75 low and in this case, this market is now heading higher in wave -b-. A more complex wave (iv) could still take the form of a flat, irregular or even a bullish triangle, if only wave -a- ended at the 71.90 low.
CDNX
The Captain’s daily CDNX chart.
Analysis:
Our long wave -ii- correction is a triple three wave pattern, is complete at the 506.65 low. We are now rallying in wave -iii-, which has an initial projected endpoint of:
-iii- = 1.618-i- = 1773.38.
Within wave -iii-, we completed wave (i) at the 1177.24 high and we are now working on the assumption that all of wave (ii) is complete at the 839.44 low.
We should now be moving higher in wave (iii), which has an initial projected endpoint of:
- = 1.618(i) = 1924.51!
Within wave (iii), we are still moving higher in wave $i$. After wave $i$ ends, we expect a wave $ii$ correction that retraces between 50 to 61.8% of the entire wave $i$ rally.
Next major resistance is our red down trendline connecting 1177.21 and 1037.25, which we are challenging and trying to break through now.
Trading Recommendation: Flat.
Active Positions: Flat, but we like the juniors wave counts even though our focus is the senior miners for now!
Active Positions: Flat.
Thanks,
Captain Ewave & Crew
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