Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
This Is Your Last Chance to Dump Netflix Stock - 19th July 19
Gold and US Stock Mid Term Election and Decade Cycles - 19th July 19
Precious Metals Big Picture, as Silver Gets on its Horse - 19th July 19
This Technology Everyone Laughed Off Is Quietly Changing the World - 19th July 19
Green Tech Stocks To Watch - 19th July 19
Double Top In Transportation and Metals Breakout Are Key Stock Market Topping Signals - 18th July 19
AI Machine Learning PC Custom Build Specs for £2,500 - Scan Computers 3SX - 18th July 19
The Best “Pick-and-Shovel” Play for the Online Grocery Boom - 18th July 19
Is the Stock Market Rally Floating on Thin Air? - 18th July 19
Biotech Stocks With Near Term Catalysts - 18th July 19
SPX Consolidating, GBP and CAD Could be in Focus - 18th July 19
UK House Building and Population Growth Analysis - 17th July 19
Financial Crisis Stocks Bear Market Is Scary Close - 17th July 19
Want to See What's Next for the US Economy? Try This. - 17th July 19
What to do if You Blow the Trading Account - 17th July 19
Bitcoin Is Far Too Risky for Most Investors - 17th July 19
Core Inflation Rises but Fed Is Going to Cut Rates. Will Gold Gain? - 17th July 19
Boost your Trading Results - FREE eBook - 17th July 19
This Needs To Happen Before Silver Really Takes Off - 17th July 19
NASDAQ Should Reach 8031 Before Topping - 17th July 19
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

HUI Gold Mining Stocks Elliott Wave Projection

Commodities / Gold and Silver Stocks 2014 Aug 25, 2014 - 07:33 PM GMT

By: Trader_MC

Commodities

Miners bull and bear markets structures can be clearly identified with the Elliott Wave Principle and look ready soon to enter a new impulsive move up. Keeping an eye on the Elliott Wave structure is important as this tool is mostly used by institutionals and hedge fund managers.


On the chart below you can see that the move from 2000 low to 2008 high is clearly an impulsive move which I labeled Wave (I) or Wave (A). This impulsive move has been followed by a corrective pattern which revealed to be an Expanded Flat Pattern (labeled A-B-C). The structure of a Flat Pattern is called a 3-3-5 which indicates that Waves A and B are both composed of three waves and Wave C is composed of five waves. I think that Wave C of the Expanded Flat Pattern took the form of an Expanding Wedge Pattern and has ended right at the bottom in December 2013. This bottom could mark the end of either a Wave (II) or a Wave (B) but in both cases we should soon see a new impulsive leg up labeled Wave (III) or Wave (C). I have also put an alternate red count which indicates that a possible impulsive Wave 5 down could be underway and reach the $150 level but I do not favor this case for the moment. Price action in the coming weeks will be key and the HUI Index should reveal its intentions very soon.

The HUI/Gold ratio chart shows that the impulsive move Wave (I) or Wave (A) from 2000 bottom to 2003 high has been followed by a long Triple Threes Corrective Pattern labeled (W)-(X)-(Y)-(X)-(Z) for a Wave (II) or a Wave (B). You can notice that the HUI/Gold ratio is at the same level as the bottom in 2000 which indicates that Miners are extremely undervalued and at a level that could generate a strong move up.

The impulsive Wave (I) or (A) lasted 381 weeks and the corrective Expanded Flat Pattern lasted exactly 300 weeks which shows a time period ratio of 0.78 (Fibonacci ratio). The HUI Index has always been connected to the 0.78 Fibonacci ratio both in price and time and it should not be a surprise that such impulsive move from $35 to $520 has been corrected by a pattern of 300 weeks’ time duration.

On the chart below you can see that the HUI Index is still holding above its standard deviation channel and its symmetry guide line that caught exactly the 2008 and 2013 bottoms. It is bullish price action until the market proves otherwise.

The last chart is the HUI/SPX ratio which is forming a Reversal Base Pattern and a bullish breakout would mean that Miners are outperforming the Stock Market.

The Elliott Wave Principle applied to the HUI structure is telling me that an impulsive Wave (III) or Wave (C) could be underway very soon as markets are always composed of at least two impulsive legs up. The Elliott Wave Principle combined with the analysis of the element of time makes me favor the black bull count for the moment. In case the market chooses the alternate red count, one of the great advantages of the Elliott Wave tool is to prepare the trader psychologically for the highest outcome but also to alert quickly in case of a different scenario. Until the market reveals his hands it is important to be patient as a bull market never goes straight up. Trying to get in and out usually ends up by losing money as traders are shaken out by the strong hands. This is how bull market works.

Trader MC
Company: Cycle Trader MC OU
Web site: http://tradermc.com
Email: contact@tradermc.com

My analysis covers different assets – Market Indexes, such as US, Europe, Emerging Markets, China, Russia etc., Commodities, Currencies (Forex Trading), Bonds and Rates. In addition to the Markets Updates for MC Members, I also post real-time Trading Alerts for MC Leveraged Members for a more aggressive strategy in all the sectors. Besides the market analysis, this site also contains Cycles Count Updates for all Market Assets, including the Forex Market.

© 2014 Copyright Trader MC - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules