Silver appears to have completed a flat correction that met resistance at 40.85- .95. A break of the w.iv circle low of 38.19 confirms that w.(2) had ended, setting the stage for a third wave decline.
Gold:
The call on Gold is a bit more complex than silver. At the weekly chart level, the price of Gold has reached a high of 1629 where w.(4) divides w.{(1)-(5)} into the Golden section.
Looking at the daily chart, the wave pattern is mature. Little, if any, upside potential remains. I would allow room for limited upside here with the understanding that the risk now is to the upside. Prints below 1478.5 would mean that a meaningful decline should follow.
You can learn more about the long term direction of Silver, Gold, global indices, commodities and currencies, in my upcoming Mid Year Forecast.
Best of Trading
Today's price action favors this call. Confirmation is still required before recognizing each top as a tradable.
ReplyDeleteBest of Trading.
Silver has made a small five wave decline to $39.275 and is now tracing out w.(ii). A common target is $40.586... the .618 retracement level.
ReplyDeleteNotes: 1. If my interpretation is correct, then w.iv circle must be fully retraced by 8/3/11 i..e. in less time than it took to build.
2. My invalidation point to this interpretation is a print above the w.(2) high of $41.396
A new chart has been posted for your review at:http://bit.ly/nvz6E1
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