Silver Knocks at Cited Window of Opportunity in 4-Sessions

By: Joseph Russo | Fri, Dec 28, 2012
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Silver Dec 14/12

This is an update to our Silver Window of Opportunity report from December 15, 2012.

In just four trading sessions following the last update, which called for a bearish short-term decline, the price of silver has plummeted nearly 7%, and has raced toward the $29.62 threshold of opportunity previously cited.

Below, circled in blue, we successfully captured the highlighted 29.68 target, (which was good for nearly a 3-pt move). The updated chart also validates prospects of a previously stated support level at the threshold of our $29.61 - $26.65 downside target window. Trading at $30.20 at the start of trade on 12-27, the market is thus far holding a recent print low of $29.62, just a penny above the target window threshold.

Silver Daily Bars

Although a window of opportunity exists through January 18 to accumulate additional physical at lower levels, the much longer-term buying opportunity remains here and now, and all the way down (if you're lucky) - to the 26.23 level. Once the minor degree 2 wave bases, it's off to the races toward levels well north of $50 per ounce.

We continue to illustrate support for a near to medium-term upside price target of $47, which shall remain defended so long as the market holds the summer low of 26.07, and maintains closes above the falling green trendline trajectory so noted.

Above the market just north of $34.00, we continue to illustrate a resting 10-pt buy trigger, which is contingent upon price breaking out above the trigger, along with sustained trade and closes above the triggers falling green trendline so noted.

Shiny Silver Bull

Despite prospects for further declines over the next month, what would kill the extremely bullish long-term opportunity? In the larger sense, nothing - because no matter what paper prices convey, one still needs to have some level of tangible asset assurance. That is to say, one must have a 10-20% portion of one's net worth in hard money in the form of physical gold and silver.

In the strategic and technical sense however, if the anticipated decline is a smaller degree 4th wave, (which is not a favored view), a print below 28.37 would mark a (ko) or key overlap violation of the first wave up at subminuette degree.

If the anticipated decline turns out to be the favored larger-degree and more bullish 2nd wave, the next sign of failure would occur upon a print beneath the summer low of 26.07, although such a breach would simply imply a more bullish shift-right and lower level terminal base for an even larger degree wave (4) base.

Since fifth-waves tend to extend in the commodity arena, and Silver is at or nearing a minor degree 2- wave or an intermediate (4) wave basing-terminal, one must not ignore the possibility that Silver's intermediate (5) of primary 3 wave can easily extend well north of $80 per ounce.

 


 

Joseph Russo

Author: Joseph Russo

Joseph Russo
Chief Editor and Technical Analyst
Elliott Wave Technology

Joseph Russo

Since the dot.com bubble, 911, and the 2002 market crash, Elliott Wave Technology's mission remains the delivery of valuable solutions-based services that empower clients to execute successful trading and investment decisions in all market environments.

Joe Russo is an entrepreneurial publisher and market analyst providing digital online media solutions designed to assist traders and investors in prudently and profitably navigating their exposure to the financial markets.

Since the official launch of his Elliott Wave Technology website in 2005, he has established an outstanding record of accomplishment, including but not limited to, ...

  • In 2005, he elicited a major long-term wealth producing nugget of guidance in suggesting strongly that members give serious consideration to apportioning 10%-20% of their net worth toward the physical acquisition of Gold (@ $400.) and Silver (@ $6.00).

  • In 2006, the (MTA) Market Technicians Association featured his article "Scaling Perceptions amid the Global Equity Boom" in their industry newsletter, "Technically Speaking."

  • On May 6 of 2007, five months prior to the market top in 2007, though still bullish at that time, he publicly warned long-term investors not to be fooled again, in "Bullish Like There's No Tomorrow."

  • On March 10 of 2008, with another 48% of downside remaining to the bottom of the great bear market of 2008-2009, in "V-for Vendetta," using the Wilshire 5000 as proxy, he publicly laid out the case for the depth and amplitude of the unfolding bear market, which marked terminal to a rather nice long-run in equity values.

  • Working extensively with EasyLanguage® programmer George Pruitt in 2010 and 2011, the author of "Building Winning Trading Systems with TradeStation," he assisted in the development of several proprietary trading systems.

  • On February 11, 2011, he publicly made available his call for a key bottom in the long bond at 117 '3/32. Within a year and half from his call, the long bond rallied in excess of 30% to new all time highs in July of 2012.

  • For the benefit of members and his general readership, he responded to widespread levels of economic and financial uncertainty in the development of Prudent Measures in 2012.

  • He publicly warned of a major top in Apple on October 26, 2012 in the very early stages of a 40% decline from its all time high.

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