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Silver: Bullish Or Bearish?

Published 01/25/2017, 07:47 AM
Updated 07/09/2023, 06:32 AM

Here is what I said about silver on 18th January, 2017. Here is one chart from that article:

Silver 5 Hour Chart

Let's start with the daily chart of silver:

Silver Daily Chart

I have shown my preferred wave count in this chart and to make it very simple, I have indicated only the larger degreee counts and smaller one left alone. It very much looks like a classical chart indicated in textbooks.

Correction in ABC finished just below the end of wave (iv) (just according to me, others may have a different look at the same chart). Diversion started from the beginning of wave C. No full wave C is in the form of ending diagonal. If I am right, we started to move higher from the condition of extreme pessimism for the bullion, where everyone just wanted to short this white giant. Silver just cleared the first resistance of 17.35 (minimum requirement for the first wave) in it's so-called wave 1 of wave (III).

Let's move to the lower timeframe for insight. Here is the 5 hour chart of silver below with insight of wave 1 of (III):

Silver 5 Hour Chart

Silver moved up to clear the first resistance of 17.35 in 5 waves and now it is under ABC correction for wave 2. In this course of correction, silver has also developed a smaller asymmetrical double top in which most the short term traders would be interested.

Ideally, wave 2 should end in the area of wave 4 of one lower degree or betweeen 50-61.80% retracement value of entire wave 1 which comes under 16.55-16.30 (indicated by blue box for support of wave 2).

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We would be keenly intererested in buying the white giant in this area with invalidation zone below 15.67. I am bullish in this metal complex. The rest is up to the market to prove whether I am right or wrong about the upcoming speculative directional move.

Resistance: 17.35/17.50/17.80
Support : 16.55/16.30/15.675

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