I'm fundamentally bullish on silver long term and I want to own it, especially with the world devaluing their currency's by the minute. When I trade I'm always asking myself what should of happened and take notice when it doesn't. What should of happened on silver was an explosion upwards after the pattern completed at the .618, noted by the first arrow. When that...
Very extended on the monthly chart running into a major trendline and previous low. Even if we're going to continue lower this is an area where you can expect a pause and a correction to run along the top or bottom of trendline. In this environment even a small pause is good for a 2000 point range!
There was a chance the A wave was all the correction and we would have an impulse down. This move down does not look impulsive so there is a good chance its just a B wave of a larger flat correction
When you look at gold on the daily chart the CCI has been holding +100 all year.. I don't look at this as over bought, I look at it as a strong up trend that you want to be part of... We're getting a correction now, B wave broke the top so that's a good sign for bulls.. A lot of times the C wave of these running flats will turn at the .618 extension of waves AB......
