Ever since silver hit the channel top in 2011, price of silver has been engaging in this long term downtrend channel. To aggravate the bleakness, a descending triangle (larger one) was formed inside this downtrend channel-(liken to putting salts on a wound/adding fuel into a fire).
Consequently, the price broke down of the long term uptrend channel bottom and after 6 weeks, the descending triangle bottom was broken too! No room for negotiation from the bears!
History does at least repeat twice!!! After hitting the downtrend channel bottom, yet another descending triangle formed again. Identically, that broke down has no room for discussion from the bear.
Now, the price at about to hit around 16.4 as i see it, either price will find minor support and then re-test the triangle bottom resistance before plunging to the channel bottom, OR, 16.4 isn't strong enough to support, and price goes straight for around 13.0 depending on the speed of price action and time.
Comments
Bosphorus_Capital
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If you don't mind my asking, what do you like about 16.4? We have the same scenario, I just see it dropping further before retesting. It might not retest fully though like happened in August 2013.
Hi, 16.4 is what i see by looking to the left at the S/R Line (i could be wrong)
your analysis could also materialize too, what is important, we both trade in this bearish chart :-)
Lacunoide
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very nice chart
jangseohee
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thank you, this is how i can make the chart as clean as possible. Hope you learn something, but trading is a probability!
Stockman
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Waves are worthless, trying to predict gold and silver is like trying to predict the future of world events...it's impossible so give it up already....silver headed to 1$ , gold headed to 150$
jangseohee
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Hi Stockman, every single technical tool has it's usage. Elliott Wave is a complex analysis too which not many people understand including me, because i do not know where i can choose to start, and it is very ambiguous, especially when there are sub-wave within a wave, i have totally no clue on that. Hence i can only trade with what i has so far grasp using Channel, Pattern, Trendline, MAs + RSI & MACD. Oh yes, sub-channel within a channel is what i can see too.
Having said that, just because we do not know well enough about EW analysis, we ought not to down play its importance, aint it :-)
Just like the pure fundamentalists who say that Technical Analysis is worthless :-)
tradingview.com/v/9Do3N0H1/