To see clear picture we will start pointing waves on the 1-monthly chart and then we will take a closer look on the Weekly chart! So let start…
From the April 2011 all the way to December 2012 price of silver was dropping, and we now need to see will price go UP or DOWN in the 2013, For this forecast we will use powerful Elliott Wave theory that in my opinion showed best result in the last 100 years.
If we look at the 1-monthly chart we can see that we are currently at the end of the corrective (4) wave (coloured blue) and that we have 4 finished subways (A,B,C,D) and only E wave to go before price of silver start to push higher. Usually 5 wave retrace 161.8% of the 1 wave so We can measure the next potential target zone by measuring first wave and we obtain the next possible targets at levels of 56.03 (161.8% of 5vs1). If fourth wave go in the territory of the first wave our count will be invalid so we can place stop loss level at the 21.31.
We now obtain take profit and stop loss levels but if we want to get best entry point let switch to the weekly chart to see sub-waves of the E wave.
On the weekly chart we can see that A and B waves (coloured red) are finished and that we are currently at the end of the C wave of the bigger E wave. According to Elliott Wave rules the E wave usually retraces 61.8% of the C corrective wave, and C wave should retrace 161.8% of A wave so when we compared this level we get possible 2 wave end target and best target to enter a long position for 5 wave.
Target Levels for end of the E wave
E wave target 1 – 29.40 (61.8% of EvsC)
E wave target 2 – 26.75 (161.8% of CvsA)
Support and Resistance
(S3) 29.457 (S2) 29.653 (S1) 29.862 (PP) 30.058 (R1) 30.267 (R2) 30.463 (R3) 30.672
Final Conclusion About Silver Price in 2013
Silver is currently at the end of the E corrective wave of the bigger (4) wave, We are expecting strong bullish movement in this commodity very soon. We can enter a long position between 29.40 and 26.75 with stop loss at 21.31 and Take Profit at 56.03.