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XME Index (ETF) – Elliott Wave Symmetry

by WaveTrack International| May 30, 2016 | No Comments

XME – Metals & Mining Index (ETF) - (AMEX)

XME – Metals & Mining Index (ETF) – (AMEX) – 120 mins.

The XME index (ETF) is a composite index of the major mining companies, totaling 38. Their interests span across many different commodities including the major metals miners such as Freeport McMoran Copper, Noranda Aluminium but also Arch Coal, Newmont Mining Gold and United States Steel, to name a few.

This year’s annual 2016 Elliott Wave forecasts announced an imminent low was forming, ending declines that began from the April ’11 highs. The XME was no exception – important lows were also being approached by the entire commodity asset-class.

Since January’s low, a near-perfect five wave impulse pattern has unfolded higher, assigned to minor degree, i-ii-iii-iv-v. Its 3rd wave underwent ‘price-expansion’ which is consistent with approximately 80-85% per cent of ‘expanding’ impulse patterns where third waves are normally the longest of the three sequences. The 5th wave is slightly shorter than the 1st but that’s quite okay with a visible five wave subdivision in the pattern to its terminal high at 25.13.

From a geometric, ratio/proportion perspective, there is also a visible adherence to the Fibonacci sequence. Extending the 1st wave to 15.53 by a fib. 161.8% ratio projects a terminal high for the 5th wave to 25.68 – with the actual high finishing the pattern at 25.13, this is accurate especially when taking into account the slight price-spike that ended the 1st wave high.

A counter-trend pattern is now in full swing to the downside. The activity so far suggests this is taking the form of a double zig zag pattern although a single zig zag count is also possible. Extending the initial downswing to 20.01 by a fib. 61.8% ratio projects a terminal low towards 17.38+/-. This measurement is valid for both the single or double zig zag pattern. Remember, should prices test the 17.38+/- level, be aware that the pattern could still mutate into a triple zig zag by searching for even deeper retracement levels.

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Category: Commodities, Elliott Wave Charts, Elliott Wave Principle, fib-price-ratio, Fibonacci Trading, Mines, Mining, Stock Indices, trading
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