Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

The 'Silver Lines' of Opportunity

Commodities / Gold & Silver 2019 Apr 13, 2019 - 06:48 PM GMT

By: EWI

Commodities

How to turn a simple chart into a near-term road map

On February 20, Variety Magazine's "Film News Roundup" announced a new thriller coming to theaters near you: "The Silver Bear."

Funny enough, that same day, another kind of thriller was playing out in the theater of finance; its name, the Silver Bull!

The chart below captures the action: Since the start of 2019, silver prices had been on a tear, soaring to $14, $14.50, $15, $15.50 and then $16 per ounce in late February in a white-hot winning streak that has outperformed even gold.


Thanks to a wide array of supportive fundamentals including a softening U.S. dollar, a dovish Federal Reserve, increased economic uncertainty and a subsequent rise in demand for traditional "safe havens" such as gold and silver -- mainstream news outlets captured the Silver Bull sentiment on high:

"Is Silver About to Explode?" (Feb. 21 Seeking Alpha)
"Silver Market Steadily Building Up Momentum" (Feb. 19 Commodity Trade Mantra)
"Silver Experiences A Bullish Development that Points to Higher Prices" (Feb. 20 ETF Daily News)

Yet, off the mainstream screen, we had a very different take on silver's rally. On February 21, our Metals Pro Service identified a classic Elliot wave "impulse" underway from the November 2018 low to the February 20 high above $16 per ounce. And, it was close to being finished.

For newbies, here is an idealized diagram of an impulse wave, defined as a five-wave move labeled 1 through 5 that adheres to three cardinal rules:

  • Wave 2 can never retrace more than 100% of wave 1.
  • Wave 3 is never the shortest among waves 1, 3 and 5.
  • And wave 4 can't end in the price territory of wave 1.

The February 21 Metals Pro Service labeled the impulsive rise on silver's price chart and warned of a pending reversal:

"Silver may have topped...at 16.19 and be correcting the entire rise from 13.98 now."

So, what should you expect after a five-wave impulse is complete?

By their very nature, an impulse move is followed by a correction, often unfolding in three waves (A-B-C) and pushing back into the span of travel of the prior fourth wave. See diagram below:

Wrote our Metals Pro Service on February 21:

"The move should develop in three waves and reach the 15.35 area over the coming days."

The white metal followed in-step, embarking on a powerful, two-week long selloff to below $15 per ounce.

Then, on March 7, our Metals Pro Service turned near-term bullish. Why?

Because now the three-wave, A-B-C correction was complete, too. On March 7, Metals Pro Service silver outlook set the stage for gains:

"On the upside, an impulsive rally above 15.17 will hint that a bottom is in place and that the larger-degree uptrend has re-ignited."

From there, silver regained its shine right into our cited upside target area on March 21 -- before turning back down.

So, where are silver prices likely headed from here?

Our Metals Pro Service analysis reveals that right now. Watch our Metals expert, Tom Denham, discuss his exciting analysis and exactly what he sees next for this precious metal in his March 28 Metals Pro Service subscriber update. Sign up now for instant access.

This article was syndicated by Elliott Wave International and was originally published under the headline The 'Silver Lines' of Opportunity. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in