Silver has made a short-term bottom just above 28$. The longer term Elliott wave count that we favor is shown in the chart below. Unfortunately for recent price action has no clear form, that is why we have to be cautious with any long positions.
Current levels could be the end of the correction that started from 35,5$ area. A bullish sign that 28$ is at least an intermediate term bottom will be if prices break above 30,12$. An upward pattern will reinforce our scenario and wave count.
In the short-term, prices move sideways with a slight upward bias. As shown below, the triangle that is formed should be used as a trigger in order to take advantage of any breakout that occurs.
Breaking above or below the depicted green or red line will give a short-term push towards that direction. Our view is that it is more probable that a new low will be seen. We believe that it is more possible for prices to break the green line than the red. The form of the upward slide does not give us much confidence that it can continue higher and above the red line. However this sideways correction can continue higher and break the red line. If that happens we could see a small jump in prices.
As always, thank you for taking the time to catch up on my thinking.
A term used to describe a trader who is expects that a particular asset – be it a commodity, currency or product – to rise in value. The opposite of a ‘bear’.
The idea is that bulls attack by bending their heads and poking their opponents upwards with their horns, symbolising the fact that they are buyers, driving prices up.
Beliefs held by the aforementioned ‘bulls’ of the trading world, are described as bullish. Characterised by a generally optimistic outlook on the state of a given asset, a bullish outlook would suggest that a rise in value is imminent. Opposite of bearish.