Analysis:
Wave i ended at the 103.65 high and we are falling in a lengthy and complex wave ii correction.
Within wave ii, we have updated our initial wave count to suggest that wave ii has become a double 3 wave corrective pattern.
Within our second three wave abc pattern, wave a ended at 67.71 and wave b at 87.67. We should be falling in our second wave c, which looks to have become and ending diagonal triangle formation.
Our retracement levels for all of wave ii are:
50% = 68.50.
61.8% = 53.87.
Our minimum target for the end of wave c is the wave a low of 63.57.
After wave ii ends, we expect a very sharp rally in wave iii!
In the long term we are rallying in wave C and that has the following projections:
C = A = 153.77!
C = 1.618A = 244.78!
Trading Recommendation: Go long crude with puts as a stop. Go long Suncor.
Active Positions: Long crude with puts as a stop! Long Suncor!
Gold
Analysis:
We continue to rally in wave ^iii^, which has a projected endpoint of:
^iii^ = 6.25^i^ = 3101.20!
After wave ^iii^ ends we expect a wave ^iv^ correction that retraces between 23.6 to 38.2% of the wave ^iii^ rally.
Basis the weekly chart: Our very large wave .iv. the bullish triangle pattern is complete at the 1810.10 low, and we continue to thrust higher in wave .v. of -iii-.
Within wave .v., wave *i* ended at the 1997.20 high and all of wave *ii* ended at the 1929.50 low. We are rallying in wave *iii*, which has a final projected endpoint of:
*iii* = 6.250*i* = 3042.30.
Our current projected endpoint for the end of wave -iii- is:
-iii- = 6.25-i- = 3199.90!
Trading Recommendation: Go long gold. Use puts as stops.
Active Positions: Long gold, with puts as our stops!
Thank you!
Captain Ewave & Crew
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