Gold & The Miners: A Divergence Now?
May 20, 2020
Unfortunately, after all of wave (b) ends we expect a drop back to the 1655.00/1666.00 level to complete all of wave $ii$.
We have graphically shown these moves on our daily gold chart:
Our retracement levels for all of wave $ii$ are:
50% = 1659.30;
61.8% = 1639.60
We will update our initial endpoint for the end of wave $iii$, when we think wave $ii$ is complete.
Wave ^iii^ that has the following initial projection for its completion:
^iii^ = 1.618^i^ = 1967.10
Our current projection for the end of wave .iii. is:
.iii. = 1.618.i. = 2306.30!
Trading Recommendation: Long gold. Use puts as stops.
Active Positions: We are long, with put options as stops!
We are still working on our wave -iii- rally, which has the following initial projection:
-iii- = 1.618-i- = 19.29
It looks like all of wave *iii* of -iii- is still underway, (in a very bullish market!) although we think it should be ending quite soon.
The other option is that we are heading sharply higher, and in that case our next projected endpoint for wave *iii* is:
*iii* = 2.618*i* = 19.90
After wave *iii* ends we will provide our retracement levels for all of wave *iv*, which are between 23.6 and 38.2% of the entire wave *iii* rally.
In percentage terms, we expect silver to rally much more strongly than gold.
Active Positions: Long, using put options as a stop!
GDX & Gold Stocks:
We are now working on the assumption that all of wave 2 is complete at the 16.15 low and that we started to rally in wave 3 which has the following initial endpoint:
3 = 1.618 (1) = 47.20
Within wave -iii-, we now think wave $i$ ended at 32.27 and all of wave $ii$ at 29.31.
If that is the case, then we are now rallying in wave $iii$, which has the following projected endpoint:
$iii$ = 2.618$i$ = 44.35
While gold could pull back from “around here”, GDX looks like it can keep surging!
Kinross: We are now rallying in wave (iii), which has initial projection of 9.68, although we suspect that wave (iii) will extend in length as our second projection for its completion is:
(iii) = 2.618(i) = 14.19.
Within wave (iii) we are now rallying in wave -iii-, which has the following projections for its completion:
-iii- = 1.618-i- = 9.01;
-iii- = 2.618-i- = 12.90.
Barrick: We are now rallying in wave iii rally which has projected endpoints of:
Iii= 1.618i= 37.10;
Iii = 2.618i = 53.94
Within wave iii we are rallying sharply in wave (iii), which has projected endpoints of:
(iii) = 1.618(i) = 32.79;
(iii) = 2.618(i) = 45.24.
Trading Recommendation: Long-term hold of all gold stocks and indices.
Active Positions: We remain long the GDX, ABX, KGC, NEM, SSRM, and TSX:XGD… with no stops!
Free Offer For Website Readers: Please send me an Email to email@example.com and I’ll send you our free short-term wave count charts and analysis for GDX and the CDNX junior miners index, with both daily and 60minute charts!
Captain Ewave & Crew
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