Precious Metals: Waiting for the Correction to End

What started as a promising gain in gold fizzled by noon on Tuesday. Precious metals stocks never got off the ground. One can even argue that this correction was foreshadowed by the continual but controlled decline throughout Monday. I closed out all positions in my trading account and am waiting for a better entry. For what it's worth, my Elliott wave count shows that we just finished wave (1) of iii of 3 of III.

click to enlarge

Normally, one would expect a correction back to the range of wave (iv) which is around the 50% retracement of 430. The 50 dma will also be in that neighborhood in one week. However, I won't be surprised if we spike a little lower given its recent behavior.

Comments

[ussmls7:]

It all has to do with the PPT working to depress the all important prices from getting to high. This is good, because they are almost out of tricks, hold onto your phyical silver/gold. Also,Ben would not give wall street any hints of a rate cut! Look out PPT, theres a Bull in your china shop!!

2008 Jan 17 01:04 PM