Silver critical point - will show future direction early Monday
I have 3 main scenarios and the good news is that they will reveal themselves very early next week.
Scenario 1. The current correction is an abc, in which wave c has already extended slightly over 1:1 (Pt. 2). This would point to the price facing very strong resistance at its current level and failing to break higher. If price fails to break above $15.55 and also travels below the green box, this would strongly support the view that we are about to start wave (5) down to the mid $14s (or more).
Scenario 2. The abc as I have tentatively named it, is in fact wave 1, 2, and 3 of a 5 wave move up. If this is the case, then we will also know very soon. If the price breaks above the double top formed on late friday and continues higher, this view will become more plausible - and Pt 1 a plausible short-term target. If the retracement that follows also fails to travel below the green box (Pt. 3) then this view will be futher supported (I know the wave 1 (if it is wave 1) top should not be breached by wave 4, however, in highly leveraged markets this can be accepted).
Scenario 3. This would be that we have seen waves 1, 2, and 3 of wave (A) up of a larger ABC correction that should reach up to and possibly beyond towards the lower trend-line (but not above $16.20 (the wave (1) extreme before forming wave (5) down.
I was stopped out for a small loss (my stop was too close) shorting the 1:1 wave 1 / a extension. But I will look to take a larger position shortly after the markets open again Monday - and I suspect that position will be a short one, however, I will wait for a wave 1 down to form first. If we continue down to break below $15.347 and the swing low at $15.185 I will add to my short targeting $14.60 for a 1.618 fix extension fo wave (1).
Thanks for reading my post. Good luck everyone.
Scenario 1. The current correction is an abc, in which wave c has already extended slightly over 1:1 (Pt. 2). This would point to the price facing very strong resistance at its current level and failing to break higher. If price fails to break above $15.55 and also travels below the green box, this would strongly support the view that we are about to start wave (5) down to the mid $14s (or more).
Scenario 2. The abc as I have tentatively named it, is in fact wave 1, 2, and 3 of a 5 wave move up. If this is the case, then we will also know very soon. If the price breaks above the double top formed on late friday and continues higher, this view will become more plausible - and Pt 1 a plausible short-term target. If the retracement that follows also fails to travel below the green box (Pt. 3) then this view will be futher supported (I know the wave 1 (if it is wave 1) top should not be breached by wave 4, however, in highly leveraged markets this can be accepted).
Scenario 3. This would be that we have seen waves 1, 2, and 3 of wave (A) up of a larger ABC correction that should reach up to and possibly beyond towards the lower trend-line (but not above $16.20 (the wave (1) extreme before forming wave (5) down.
I was stopped out for a small loss (my stop was too close) shorting the 1:1 wave 1 / a extension. But I will look to take a larger position shortly after the markets open again Monday - and I suspect that position will be a short one, however, I will wait for a wave 1 down to form first. If we continue down to break below $15.347 and the swing low at $15.185 I will add to my short targeting $14.60 for a 1.618 fix extension fo wave (1).
Thanks for reading my post. Good luck everyone.
Comment:
Scenario 1 it is then