Metals Trading | Elliott Wave Structures | Q2 2019

Metals Trading | Elliott Wave Structures | Q2 2019
Markets: Precious Metals

• GDX (Gold Miners)
• XAU/USD (GOLD)
• XAG/USD (SILVER)

Metals have been recovering for the second half of 2018, showing a consistent bullish impulse.
This fairy-tale came to an end while entering the 1st quarter of 2019, when Metals once more started tumbling.

The declines however leave room for me to think that a retracement should “pop” rather soon, if the bearish sentiment would be destined to continue.

A detailed “road-map” on the USD can be found with the “Forex Trading | Elliott Wave Structures I Q2 2019” article, if one would want to correlate or continue the main trends shared.

At this stage the Precious Metals have lost enough ground and should be able to push on the up-side once more.

It is of course to be seen how strong the moves would be, and this depends on which direction the DXY decides to take.

By the looks of things, a bullish swing is in the menu for Precious Metals, even if it would reflect a corrective pattern completion.

In the lines to come I will be sharing some thoughts on Metals and also pointing towards possible scenarios for the second quarter of 2019.

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GDX – Elliott Wave Outlook

• Bullish Swings – Patterns:
  ABC swing in Intermediate (A) (green
  Simple Correction in Intermediate (B) (green)
  Ending Diagonal in Intermediate (C) (green)

• Bearish Swings – Patterns
  Sharp Bearish Impulse in Intermediate (A) (light blue)
  Simple Correction in Intermediate (B) (light blue)
  Ending Diagonal in Intermediate (C) (light blue)
  Bullish Harmonic Pattern

• Next expected swing:
  Bullish leg in an attempt to reenter the Channel.

• Structure change:
  A breach on the down-side in an impulsive manner could lead towards a down-trend confirmation for Precious Metals.

XAU/USD – Elliott Wave Outlook

• Bullish Swings – Patterns:
  Cycle Degree Contracting Triangle (turquoise)
  ABC sustained bullish swing in Cycle D (turquoise)

• Bearish Swings – Patterns:
  ABC Wedge Formation in Intermediate (A) (blue)

• Next expected swing:
  Bullish sequence in Intermediate (B) (blue)

• Structure change:
  A bearish continuation in an impulsive manner could lead towards a breach of the Fibonacci lines and could then result in a down-trend confirmation.

XAU/USD – Daily Interactive Chart