SILVER Elliott Wave Technical Analysis

By: Lara Iriarte | Wed, Jun 4, 2014
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Downwards movement fits the main wave count, but only movement below 18.581 would confirm it. If the main wave count is correct we may be about to see some strong downwards movement over the next week.

Main Wave Count.

Silver Daily Chart
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Silver is within an intermediate degree (B) wave. Unfortunately, B waves are the most difficult of all Elliott wave structures to analyse because they have the widest variety. There are more than thirteen possible structures this B wave may take and so flexibility in analysis is essential.

Intermediate wave (B) may be an incomplete flat correction.

Within the flat minor wave A subdivides as a three wave zigzag.

Minor wave B downwards may be an incomplete zigzag.

Within the zigzag of minor wave B minute waves a and b are complete. Minute wave c would be an incomplete impulse.

The target for downwards movement to end is at 15.691 where minute wave c would reach equality in length with minute wave a. This target may be about four weeks away.

Movement below 18.581 would invalidate the alternate wave count below and confirm this main wave count.

This wave count expects to see an increase in downwards momentum as a third wave unfolds.

Downwards movement may find support and may end at the lower edge of the pink channel containing minor wave B.

Within minuette wave (iii) subminuette wave ii may not move beyond the start of subminuette wave i above 19.996.

Silver 2-Hour Chart
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So far within minuette wave (iii) subminuette waves i and ii are complete. Within subminuette wave iii micro wave 1 is complete and micro wave 2 is over halfway complete.

The green channel is a base channel drawn about minuette waves (i) and (ii): from the start of minuette wave (i) to the end of minuette wave (ii), with a parallel copy upon the end of minuette wave (i). Upwards movement for subsequent second wave corrections should find resistance at the upper edge of the base channel. The momentum of micro wave 3 should be strong enough to break through support at the lower edge of the channel. Once breached the lower trend line should then provide resistance.

Micro wave 2 may move a little higher to end about 19.086.

At 17.004 minuette wave (iii) would reach 1.618 the length of minuette wave (i). This target may be one to two weeks away.

Micro wave 2 may not move above the start of micro wave 1. This wave count is invalidated with movement above 19.824.

Alternate Wave Count.

Silver Alternate Wave Count Daily Chart
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A triangle may be forming at the daily chart level. The triangle fits best as a barrier triangle for intermediate wave (B). The B-D trend line is almost perfectly flat.

This wave count expects more choppy overlapping sideways movement with a decrease in volume, and momentum remaining close to zero, for about another two or three weeks.

Within the barrier triangle minor wave D may not move substantially below the end of minor wave B. As long as the B-D trend line remains flat this wave count will remain valid.

Minor wave E should subdivide as a single zigzag and may not move above the end of minor wave C at 22.224.

This alternate wave count expects price to break out to the downside once the sideways structure is complete. This breakout may yet be weeks away. Minor wave E is incomplete, and it has not taken enough time nor moved high enough at this stage to look right.



Lara Iriarte

Author: Lara Iriarte

Lara Iriarte

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 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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