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Gold, Silver, Bronze

Elliot Waves trading idea for Gold, Silver and Gdx

Hello traders and investors. I am Radi Valov, a professional trader and today I want to make a quick update to my analysis of gold and silver. There has been a lot of volatility in the commodity market in the last week, of course in the stock and forex markets as well, but in general, the commodities are much more volatile.

I’ll start with the weekly silver trend chart. (anyone who wants to see bigger time frames and older trading charts can check out my previous analysis for Gold and Silver in Market Analysis category Trading signals)

Silver-Weekly Chart

Silver-Weekly Chart

It is a very interesting moment for Silver. Most likely the correction, which I consider as a flat for wave 2, is over. Wave C of 2 developed as an ending diagonal and ended with a shortened fifth wave.

I consider the bottom from four weeks ago -21.98 as the last bottom for the end of this correction for wave 2. From there upwards impulse movement develops for the first wave of the new upward cycle. At the moment we are correcting this first wave and I expect the price to find support in the zones around 23.70-23.30. A critical point for the analysis, for now, is the bottom at 21.98. The potential of this commodity is much greater than that of gold, in my opinion, and now is the right time to watch very closely, as we are at a very early stage of the new cycle and the risk/return ratio can be huge here.

Gold-Daily Chart

Gold-Daily Chart

After my last analysis, Gold made a nice rise and it now seems obvious that the symmetrical triangle I’m looking at for wave 4 is over. According to my counting, the last wave (е) of this triangle ended with the bottom in the zone of 1780 and from there we have completed the impulse motion for wave 1 of a new upward trend.

I expect to see a correction in the coming weeks to find support in the area around 1830-1850. The critical point for bullish analysis (with red on the graph) is the bottom of 1780. A break at this level would mean that we are in the alternative scenario (with blue on the graph) and a much larger and longer downward correction is underway.

Gold companies should also have started a new upward cycle. A critical point for GDX is the bottom in the zone of 29. I expect, as with both metals, to see a correction of the last rise here, which will most likely find support in the zone around 32.

GDX 38.800

See my previous analysis for Gold and Silver

Elliott waves signal for Gold update

Elliott waves signal for Gold

Elliott waves signal for Silver


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