SILVER Elliott Wave Technical Analysis

By: Lara Iriarte | Thu, Dec 19, 2013
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Last analysis of Silver expected downwards movement towards a mid term target at 18.999. Price has moved lower. The target has not yet been reached, and the structure is incomplete. The target remains the same.

XAG/USD Chart - 1 Day Data
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Minor wave B is an almost complete zigzag, which is within a bigger zigzag trending upwards one degree higher for intermediate wave (B). Because within intermediate wave (B) minor wave A subdivides as a five wave structure, minor wave B may not move beyond the start of minor wave A. This wave count is invalidated with movement below 18.215.

Within minor wave B minute wave a subdivides nicely as a leading expanding diagonal. Within the leading diagonal all the subwaves are zigzags except the third wave which is an impulse. For this piece of movement this structure has the best fit.

Minute wave b is labeled as an expanded flat correction. Within it minuette waves (a) and (b) both subdivide as three wave zigzags, and minuette wave (b) is a 106% correction of minuette wave (a). There is no Fibonacci ratio between minuette waves (a) and (c).

Minute wave c is an incomplete impulse. At 18.591 minute wave c would reach equality in length with minute wave a.

The narrow channel drawn about minute wave c is drawn using Elliott's second technique. Draw the first trend line from the ends of minuette waves (ii) to (iv), then place a parallel copy upon the end of minuette wave (iii). Downwards movement may end close to the mid line of this channel.

At 18.999 minuette wave (v) would reach equality with minuette wave (i). This would see the fifth wave truncated, which is possible after a strong extended third wave. Equality with the first wave is the most common ratio for a fifth wave, so that is what I am using for this target calculation.

Within minuette wave (v) no second wave correction may move beyond the start of its first wave. This wave count is invalidated with movement above 20.489.

XAG/USD Hourly Data Chart
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Within minute wave v there is now a completed five wave structure downwards, and a three wave structure upwards. This is most likely subminuette waves i and ii now complete.

Ratios within subminuette wave i are: micro wave 3 is just 0.029 short of 4.236 the length of micro wave 1, and micro wave 5 has no Fibonacci ratio to either micro waves 3 or 1.

Within subminuette wave ii there is no Fibonacci ratio between micro waves A and C.

Subminuette wave iii must make a new low below the end of subminuette wave i at 19.305, and must move far enough below this price point to allow enough room for subminuette wave iv to unfold and not move back into subminuette wave i price territory.

I have drawn an acceleration channel about subminuette waves i and ii. Subminuette wave iii should breach the lower edge of this channel. On the way down any corrections should find resistance at the upper edge of this channel.

Within subminuette wave iii no second wave correction may move beyond the start of its first wave. This wave count is invalidated with movement above 20.279.

I would expect the target at 18.999 to be reached within two weeks.

 


 

Lara Iriarte

Author: Lara Iriarte

Lara Iriarte
elliottwavegold.com

Lara Iriarte

Elliott wave is one of the more difficult and complicated technical analysis tools. When done right it can be uncannily accurate.

I have been using the Elliott wave principle to analyse up to five markets a day since 2008. I began Elliott Wave Forex (originally ForexInfo.us) in 2009 to provide daily analysis of EURUSD and GBPUSD, then I began Elliott Wave Stock Market in 2010. Elliott Wave Gold began in August, 2013. Currently I provide daily analysis of Gold on this site, and daily analysis of the S&P 500 on Elliott Wave Stock Market for its members.

I have a science background (BSc) which has trained me to think logically and be evidence focussed. Over the years I have seen no market movement which does not fit into the clear and restrictive rules for Elliott wave structures.

I have members who are fund managers, institutional investors and professional traders.

If you want to learn how to apply the Elliott wave principle to any market my analysis service is designed to teach you, daily, how to do this.

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