The gold miners’ correction may be over:

According to Elliottwave International Elliott waves often correct in terms of Fibonacci ratios. They explain in their new eBook How You Can Use Fibonacci to Improve Your Trading, which explains what you can expect when a market begins a corrective phase.  The classic Fibonacci retracement percent number (%R) is 61.8% but 50% (not a Fibonacci #) is common.

Basically a retracement is a correction that follows a meaningful advance – so in example of the gold stocks we had a trough in late December 2013 – a subsequent advance through to a mid March peak and then a sharp two week correction. When I look at the TSX precious metal complex I observe that most miners have corrected – or retraced about 50 per cent of the January 2014 through February advance.

Note the chart displaying two baskets of junior gold miners – the BMO Junior Gold Index ETF (ZJG) and the Market Vectors Junior Gold Miners ETF (GDXJ:US) with both correcting (or retracing) about 62% of the December March advance – opportunity now for those who missed the December March advance..