The middle wave structure bounded by two vertical lines is impulsive, it can be considered as the First Wave (I) of a larger impulsive structure, or it can be a corrective wave (A) in a larger corrective structure.
This impulsive wave starts on ( Nov.-24-2008 ) at price ( 0.24 Silver Ounce ), and ends on ( Dec.-13-2010 ) at price ( 1.40 Silver Ounce ).
The structure to the right is clearly corrective, it forms a triangle, though it may break the triangle down a little bit trying to complete the structure at ( 0.80 Silver Ounce ), it retrace 50% of the previous impulsive structure.
This corrective structure divided into three corrective waves;
( ) Wave A is sharp with short duration.
( ) Wave B extends to about 18 month, and retrace 80% of wave A.
( ) Wave C need two months to three months to complete.
( ) Wave C divided into three corrective subwaves ( not labelled on chart ).
( ) The first subwave has a length of ( 0.34 Silver Ounce ) and time duration of about six months.
( ) For the third subwave to be same length as first subwave, it should end at ( 0.86 Silver Ounce ). And to last for six months ( same duration as first subwave ), it should end in late ( Jan.-2014 ) or in ( Feb.-2014 ).
( ) Wave C may also end at ( 0.80 Silver Ounce ).
( ) Wave C as a hall take three years.
So we have:
First Wave:
- upward - duration two years - gained ( 1.16 Silver Ounce ) per share ( 483% gain in terms of Silver Ounces .)
Second Wave:
- sideway triangle - last three years - retrace 50% of previous wave - ends at ( 0.86 Silver Ounce per share.)
Third Wave:
- it will be upward in all cases - will it be impulsive or corrective? - let us see.
- it will have the following projections:
2.11 Silver Ounces per share ( Fibonacci level 1.618 of the First Wave )
3.27 Silver Ounces per share ( Fibonacci level 2.618 of the First Wave )
4.90 Silver Ounces per share ( Fibonacci level 4.230 of the First Wave )
Let's say to buy SLW (Silver Wheaton ) by end of ( Jan.-2014 ) or early ( Feb.-2014 ) at ( 0.86 Silver Ounce ).
So to reach first projection, our gain will be ( 1.25 Silver Ounce ) per share --> 145% gain in terms of Silver
This impulsive wave starts on ( Nov.-24-2008 ) at price ( 0.24 Silver Ounce ), and ends on ( Dec.-13-2010 ) at price ( 1.40 Silver Ounce ).
The structure to the right is clearly corrective, it forms a triangle, though it may break the triangle down a little bit trying to complete the structure at ( 0.80 Silver Ounce ), it retrace 50% of the previous impulsive structure.
This corrective structure divided into three corrective waves;
( ) Wave A is sharp with short duration.
( ) Wave B extends to about 18 month, and retrace 80% of wave A.
( ) Wave C need two months to three months to complete.
( ) Wave C divided into three corrective subwaves ( not labelled on chart ).
( ) The first subwave has a length of ( 0.34 Silver Ounce ) and time duration of about six months.
( ) For the third subwave to be same length as first subwave, it should end at ( 0.86 Silver Ounce ). And to last for six months ( same duration as first subwave ), it should end in late ( Jan.-2014 ) or in ( Feb.-2014 ).
( ) Wave C may also end at ( 0.80 Silver Ounce ).
( ) Wave C as a hall take three years.
So we have:
First Wave:
- upward - duration two years - gained ( 1.16 Silver Ounce ) per share ( 483% gain in terms of Silver Ounces .)
Second Wave:
- sideway triangle - last three years - retrace 50% of previous wave - ends at ( 0.86 Silver Ounce per share.)
Third Wave:
- it will be upward in all cases - will it be impulsive or corrective? - let us see.
- it will have the following projections:
2.11 Silver Ounces per share ( Fibonacci level 1.618 of the First Wave )
3.27 Silver Ounces per share ( Fibonacci level 2.618 of the First Wave )
4.90 Silver Ounces per share ( Fibonacci level 4.230 of the First Wave )
Let's say to buy SLW (Silver Wheaton ) by end of ( Jan.-2014 ) or early ( Feb.-2014 ) at ( 0.86 Silver Ounce ).
So to reach first projection, our gain will be ( 1.25 Silver Ounce ) per share --> 145% gain in terms of Silver