Liberty Gold and Silver
In Elliott Wave terms, a bullish up move contains five waves; 1, 3, and 5 are upside and 2 and 4 are corrective waves. As we analyze the waves that began in January of this year, we can see that wave 2 was a sideways consolidation to work off the initial thrust up off the January lows and wave 4, using the rule of alternation, was a very sharp and quick pullback relieving the overbought condition of the July/August wave 3 up tick. We believe that wave 5 up to new recovery highs may have begun Thursday, August 25. Without getting too technical, this was a much needed pullback to set the table for the next bullish rally. Quite likely, the sharp pull back was exacerbated by the dog days of August as volume is light going into another school year and the last week of summer vacation. Continue reading “The Rule of Alternation Is The Precious Metals Correction Over?”