Minor wave'5 due, before significant move higher?

Gold and Silver could easily be tracing out a 5 wave pattern, as part of a very large multi-month bull flag formation. A final fifth wave to the downside could be imminent, before a much bigger rally, taking GLD and SLV above 175 and 34 respectively.


GLD, daily

SLV, daily

Summary

I've not added it on the daily charts, but you could easily count 4 small waves lower from the highs of last September. A final fifth wave might easily be very minor though, and could even truncate, with a slightly higher low than the fourth.

What is clear, the bigger weekly charts are highly suggestive of what still appears to be a giant bull flag...


GLD, weekly2, rainbow

SLV, weekly2, rainbow

Both Gold and Silver look set for a major move to the upside. I certainly don't expect new historic highs in 2013, but the highs from last September look set to be tested..and probably broken this Spring/early Summer.