Hi all,
Silver is at an interesting point right now. I am waiting for a set-sup to go long on it due to:
- The five waves down have completed,
- RSI is at very low levels (and showing a small bounce.
There is some reason to be cautious:
- This may be wave A of a larger ABC correction down,
- Silver declined 9% after breaking the lower trend-line but I expected it to go lower if basing the drop on the width of the triangle formation,
- The larger-scale ABC correction (in which the triangle is wave B) would put the price a lot lower if the C wave extended 100% of wave A (that it didn't indicates strong support).
However, it appears to me that a valid 5 wave formation has completed in the short-term. At a minimum I expect a strong ABC correction up - that may approach the bottom trend-line of the symmetrical triangle. Afterwards, I will be watching closely for a wave 1 and 2 forming either upwards or downwards. I will probably post here when this is identified. Unfortunately, I am not able to invest in physical silver because there isn't much liquidity where I live and they offer much lower buy back rates. If that wasn't the case I would have started to accumulate physical silver due to my TA and:
- Silver is closer to its bottom than gold is IMHO,
- The GOLDSILVER Ratio is very high at 80+ and a correction in the favour of silver is on the cards (historically this can be seen to be the case - 83.5 is the highest in the last 20 years),
- GOLDSILVER is finishing/ finished wave B up and it seems to have formed a smaller-degree wave 1 and 2 down and if that is the case, expect a sustained bull-run of silver against gold / general appreciation of silver, over the next few months,
- Silver is on sale right now and the risk vs reward of silver looks quite good,
- Silver is mined at approximately the rate of 10 units per 1 of gold and demand for silver is stable if not increasing.
If you value gold I view buying silver, selling at the peak, and buying gold as one of the better avenues to achieve this within Commodities.
This is 95% Technical Analysis with a small amount of fundamental analysis and is published for my own education and to easily keep a track of the targets / instruments I trade or want to be trading. Disclosure: I am not presently in any position in silver, I am a newcomer to technical analysis, and am not a finance professional.
Silver is at an interesting point right now. I am waiting for a set-sup to go long on it due to:
- The five waves down have completed,
- RSI is at very low levels (and showing a small bounce.
There is some reason to be cautious:
- This may be wave A of a larger ABC correction down,
- Silver declined 9% after breaking the lower trend-line but I expected it to go lower if basing the drop on the width of the triangle formation,
- The larger-scale ABC correction (in which the triangle is wave B) would put the price a lot lower if the C wave extended 100% of wave A (that it didn't indicates strong support).
However, it appears to me that a valid 5 wave formation has completed in the short-term. At a minimum I expect a strong ABC correction up - that may approach the bottom trend-line of the symmetrical triangle. Afterwards, I will be watching closely for a wave 1 and 2 forming either upwards or downwards. I will probably post here when this is identified. Unfortunately, I am not able to invest in physical silver because there isn't much liquidity where I live and they offer much lower buy back rates. If that wasn't the case I would have started to accumulate physical silver due to my TA and:
- Silver is closer to its bottom than gold is IMHO,
- The GOLDSILVER Ratio is very high at 80+ and a correction in the favour of silver is on the cards (historically this can be seen to be the case - 83.5 is the highest in the last 20 years),
- GOLDSILVER is finishing/ finished wave B up and it seems to have formed a smaller-degree wave 1 and 2 down and if that is the case, expect a sustained bull-run of silver against gold / general appreciation of silver, over the next few months,
- Silver is on sale right now and the risk vs reward of silver looks quite good,
- Silver is mined at approximately the rate of 10 units per 1 of gold and demand for silver is stable if not increasing.
If you value gold I view buying silver, selling at the peak, and buying gold as one of the better avenues to achieve this within Commodities.
This is 95% Technical Analysis with a small amount of fundamental analysis and is published for my own education and to easily keep a track of the targets / instruments I trade or want to be trading. Disclosure: I am not presently in any position in silver, I am a newcomer to technical analysis, and am not a finance professional.
Comment:
I really expected to see a bit more bullish pressure after such a significant drop. I am entering a long position on a break above $14.712 (as it looks like a possible wave 1 & 2 up). Since the order was loaded wave 2 deepend - if it deepens much more it will retrace more than 100% of wave 1 and I will cancel the order.