Elliott wave analysis
As shown on the weekly chart, Spot Silver has been falling consistently since April 2011, it's been 8 years of a downtrend. It has fallen 70% from the top.
The last couple of years were dull for the market as it has been trading in a narrow range of $14 - 18.50. The $14 mark is clearly acting as a strong base.
Looking at the Elliott wave count, a clear 5 wave decline is visible from the highs made in the Year 2011. Completion of a 5 wave decline suggests a pullback rally is due in the form of A-B-C. Minimum retracement target for the same is around $22.40. Confirmation of the start of a pullback rally will come above $16.20. One must look for an opportunity to go long on the first bullish sign.
Outlook for non-technicians:
Silver looks very bullish above $16.20 targeting at least $22.40 (~38% possible rise). One can initiate a buy position for the said target once Silver breaches $16.40. The downside looks limited till $14.00 at present which gives risk-takers an opportunity to go long at cmp with strict SL below $13.55.
The last couple of years were dull for the market as it has been trading in a narrow range of $14 - 18.50. The $14 mark is clearly acting as a strong base.
Looking at the Elliott wave count, a clear 5 wave decline is visible from the highs made in the Year 2011. Completion of a 5 wave decline suggests a pullback rally is due in the form of A-B-C. Minimum retracement target for the same is around $22.40. Confirmation of the start of a pullback rally will come above $16.20. One must look for an opportunity to go long on the first bullish sign.
Outlook for non-technicians:
Silver looks very bullish above $16.20 targeting at least $22.40 (~38% possible rise). One can initiate a buy position for the said target once Silver breaches $16.40. The downside looks limited till $14.00 at present which gives risk-takers an opportunity to go long at cmp with strict SL below $13.55.
Happy Trading!
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