By Venelin Penchev
| Nov 23, 2012 11:36AM GMT |
Silver closed above its 50-day MA this week -- generally considered a buy signal -- which could encourage bulls to add to their long positions. Movement from 3,071.50 could be counted impulsively as shown on the chart below.
On the other hand, according to the wave count represented on the alternative chart, a correction by silver might not be finished and silver's recent rally could be just a final wave of corrective wave [b].
Until further price direction is clear, the best strategy is to forget any bias and stay out of the market. Buyers should be especially careful to avoid falling into a bull trap.
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