Silver Lining Up For Dull Move | $XAG $USD $SILV #silver $XAU

FX:XAGUSD   Silver / U.S. Dollar


A L/T look at $XAG suggest a protracted bearish correction in the shape of an Elliott Wave Leading Diagonal , based on:

1 - A deep correction from a 49.780 high reached on April 25th, 2011.


2 - Internal alternations of 5-3-5-3-5 waves, identifying the overall pattern as an EW's Leading Diagonal .


Apart for the wave count, the predictive/forecasting model eyes the following target:

- TG-Lo = 9.655 - 20 OCT 2014


While the scale of the chart might appear difficult to trade to retail traders, the emphasis here is put on a bearish bias that is not simply based on a sustained bearish trend born in 2011, but also on the wave count expectation of a termination at Point-5 and a separate predictive/forecasting model that defines a bearish target at 9.655.

A limited upside exists in the near interim, as price could attempt a shallow rally to 18.191, corresponding to a significant line-up of a then-triple support, turned now-resistance. This interim rally might occur following the recent sustained downtrend that developed since Point-4.

Look for a correlating action in the RSI to confirm these alternative moves between resistance and support in price.


David Alcindor
Predictive Analysis & Forecasting
Denver, Colorado - USA

Twitter: @4xForecaster


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