GDX - The Gold Ride of a Lifetime Is Just Getting Started Expert Says | Benzinga
Source: Captain Ewave 04/10/2024
Newsletter Writer Captain Ewave shares a detailed analysis showing where they believe the gold market is headed.
Are gold and gold mining stocks on the verge of an explosive move higher? Based on our latest analysis, the answer appears to be a resounding yes. Let's dive into the technical setup and what it could mean for precious metals investors.
US 10-Year Bond Yield: Completing a Correction
Our analysis suggests the U.S. 10-year bond yield has finished the first wave of a new 5-wave impulsive sequence at the 5.021% high. We are now likely seeing a corrective wave ii pullback, with key retracement levels at 2.698% (50%) and 2.155% (61.8%).
Zooming in further, it seems wave ii is carving out a simple 3-wave pattern. Within that, wave -i- of (a) likely ended at 3.785%, and wave -ii- is still in progress, potentially tracing out a bullish triangle. Our retracement levels for all of wave -ii- are 4.391% (50%) and 4.534% (61.8%).
Notably, U.S. rates are not confirming the dollar's recent high - a bullish divergence for gold. We recommend staying short to ride the wave (a)/ii drop, with a stop above 5.050%.
Gold: Powerful Wave Pattern Unfolding
Gold's wave structure reveals the makings of a major thrust higher. It appears gold is advancing in wave .v., with wave ^i^ of i ending at $1997.20 and wave ^ii^ bottoming at $1931.80. This sets the stage for a powerful wave ^iii^ advance, with an initial target of $2234.50 (1.618 times wave ^i^).
Drilling down, wave ^iii^ is subdividing into five waves ...