Something To Watch For In Silver

No, I have not changed my primary counts in metals, and still believe that they can use a “rest,” but there is a set up in silver that I have to bring to your attention.

If you have been following my silver chart, you would know that we have been developing a potential 1-2 structure within a wave [3] of [iii].  And, with today’s low, we have potentially completed a c-wave as an ending diagonal within wave 2.  

Again, I cannot say that this is a high probability set up just yet, as both the GDX and GLD seem to need a pullback.  But, just looking at silver, if we see another 5-wave rally for wave i, followed by a corrective wave ii pullback, and then break back out over the high of wave I, well, that will likely trigger this melt-up set up.  

So, for now, this is something that should be on your radar, especially as long as we hold over today’s low.  But, a break down below today’s low will open the door to the yellow count.