Silver Long View - Couple of Scenarios - Both Bullish
After having posted some rather bearish views, here are a couple of bullish views.
First, if the current triangle is wave (B) in an ABC correction then after the recent 5 wave down move (5 valid waves are present on some charts for silver and not for others (as the wave (ii) extreme is slightly higher than a 100% retracement on some charts - and not on others - on this chart it isn't higher and therefore is a valid wave (ii)). price should then cross back through the triangle to close significantly higher for a decent gain. Wave (C) may move to $22.7 on a 1:1 extension of wave (A).
Second, The swing high is a wave 1 peak and the current correction is a leading diagonal. In this scenario price should peak at or above $22 for wave (3), and may close above $27 for wave (5). Silver has a history of showing extended 5th waves, so I have depicted wave (5) reaching the 2.618 fib extension, which is definitely possible. If either of these scenarios play out, silver can be expected to significantly increase its purchasing power relative to gold (by 20%+), and also in absolute terms.
The gold/silver ratio TA recently published would support the above views.
I have also posted a few bearish scenarios. A recently read story about JP Morgan accumulating over 130 million ounces prompted me to add a bullish view.
Happy trading everyone.
First, if the current triangle is wave (B) in an ABC correction then after the recent 5 wave down move (5 valid waves are present on some charts for silver and not for others (as the wave (ii) extreme is slightly higher than a 100% retracement on some charts - and not on others - on this chart it isn't higher and therefore is a valid wave (ii)). price should then cross back through the triangle to close significantly higher for a decent gain. Wave (C) may move to $22.7 on a 1:1 extension of wave (A).
Second, The swing high is a wave 1 peak and the current correction is a leading diagonal. In this scenario price should peak at or above $22 for wave (3), and may close above $27 for wave (5). Silver has a history of showing extended 5th waves, so I have depicted wave (5) reaching the 2.618 fib extension, which is definitely possible. If either of these scenarios play out, silver can be expected to significantly increase its purchasing power relative to gold (by 20%+), and also in absolute terms.
The gold/silver ratio TA recently published would support the above views.
I have also posted a few bearish scenarios. A recently read story about JP Morgan accumulating over 130 million ounces prompted me to add a bullish view.
Happy trading everyone.
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