Monday, April 4, 2016

Silver: How Far Can It Go Down Before Turning Up?

The long term bearish move we saw in Gold and Silver ended towards the end of 2015 in a terminating ending diagonal pattern.

The dip was a clear impulse wave.

The diagonal structure ended at 13.59 and price broke upside just as expected.

The rally from 13.59 to 16.10 (mid-march 2016) is an impulse 1st wave of the first leg of whatever corrective that might emerge in months time.

Price, presently, is in a 3-wave dip from 16.10 which could be taken as the second wave.

From different projected level, 14.40-1460 is expected to support price if it gets there in a bid to complete the zigzag pattern (2nd wave).


We would be expecting price to rally from this zone (14.40-60) for the start of a probable stronger rally that could break 16.10.

Intraday View:  We expect price to dip further to 14.40-60 especially if 15.07 ( an intra day resistance) is held



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