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AynCzubas
Apr 30, 2015 2:28 PM

XAGUSD Silver in Bearish Triangle? 

Silver/U.S. DollarFXCM

Description

If this is a triangle as labeled in the chart, this could get ugly very quickly. Estimated thrust would be down to the $12 level if the E wave has peaked at this level. If the "E" wave pushes above the "A", something else is going on.
Comments
AynCzubas
The "E" wave had not peaked at the aforementioned level. It did drop sharply at the moment I expected (see chart above) but then developed further and higher, so I have since adjusted my labeling to call that wave "C", which peaked at $17.757.

As of today, it appears that the subsequent wave "D" has bottomed at the lower trendline of the triangle at $16.801 and begun an impulse upward, which I will now consider to be the first leg of wave "E" which should be the final wave of the triangle prior to a major decline.

I estimate that wave "E" will peak at just slightly above wave "C"'s extreme, around $17.70-80, and probably do so in early August when it hits resistance at the downward sloping trendline from the two peaks in 2012 (the only long-term trendline crossing through this forecasted price area). Following that, there should be a 5-wave impulsive thrust which pulls price down by $4.00, to around $13.75. At that level, my view is that price should reverse into (at least) a three-wave ABC rally (possibly with the intermediate wave "B" taking the form of a triangle) targeting $27 or $32 (i.e. about 0.382 or 0.5 retracement of the decline from 2011-2015.
AynCzubas
AynCzubas
P.S.: The purple rising trendline at the bottom is established from lows in 2002, 2005 and 2008 and lends strong support to the idea of a bottom in September at the $13.75 level.
AynCzubas
As of right now, seeing several indications in the wave structure that silver is basing for an imminent launch up to at least $17.328, with potential breaks near $16.293, $16.62
AynCzubas
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