Elliott Wave on Silver
Triangle breakout is near
Short Term Forecast
Silver appears to be in a triangle pattern currently in wave (E) down. We should see minor downside for Silver before a reversal and subsequent breakout to the upside. The downside could complete as wave (C) down or we could see further sideways action in wave (E) into the apex of the triangle. Our Gold, USD, Euro and CAD charts all support the Silver count as they are close to a reversal as well. We will monitor all of these charts to forecast a potential bottom in the metals. The recent newsletter for the USD illustrates a move higher to the 88 area before a reversal. This advance in an ending diagonal for the USD, so it could actually complete in the 87-88 area. The chart below illustrates that the corrective action for Silver since May 2006 is completing as a triangle.
When we see the price action for Silver break above the top horizontal line on the chart, it will confirm the breakout above the top trendline. A break below the the lower horizontal lines will be short term bearish and indicate that a larger WXY corrective pattern is in play.
These charts are only a guide so that you can follow the action and watch for the expected bottoming action in the triangle. The action could play out exactly as illustrated or it may need adjustments as we follow it through. Our charts on the currencies support minor downside for the metals and we can monitor the action to determine a turning point.
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To learn more on the status of Gold, Silver, HUI and the USD, please visit the link below for registration details. The commentary and forecasts are updated daily, including intraday commentary and chart updates. Fibonacci pivot dates and cycle analysis are also utilized to forecast reversal dates. The indices covered include the NASDAQ, DOW, S&P 500, Nikkei, and DOW Transports. Commodity charts include the CRB Index, Copper, Crude, Sugar, Wheat, Corn, Soyabeans, Platinum, Palladium, Gold, Silver, HUI and the XAU (Gold and Silver index). Additional Elliott Wave charts cover the US Dollar (USD),(CAD), 10 Year Treasury Note Yield (TNX), Nortel, Ballard Power, North American Palladium, Placer Dome, Gold Corp, Barrick Gold, High River Gold, Pan American Silver, Couer D Alene Mines (CDE), Bema Gold (BGO.TO), Durban Roodeport Deep (DROOY), Newmont Mining (NEM) and Agnico Eagle Mines (AEM).