I'm seeing two possibles here folks...Both bullish, but one bull will outlast the other and mark a long-term turning point for the pair. Both scenarios call for more upside pressure in the immediate short-term. In the 1st interpretation, we are seeing the first tentative steps to a super-cycle move to the upside measured in multiple years. I'm careful not to read too heavily into this, but with Gold heading towards +$2000-25000 per troy ounce in the next 12-24 months and technicals pointing towards decades of sustained upside, it likely that the demand for Silver (and the other precious metals will similarly grow pushing price higher) Staying with this commentary, we see a clear 1-5 wave structure on the minor degree, followed by a move off the highs. Wave 2 appears as a flat rather than the expected zig-zag formation.
This is not ideal for me. I would be happier seeing a +50% wave 2 retracement to test the 13.766 first before the next leg higher. This structure has me suspicious and opens the door for an alternative count, labelled in black as a primary degree ABC zig-zag. We might call this a corrective holding pattern of sorts. In some respects, this alternative and considerably 'less bullish' count fits more in line with the present fundamentals: Covid-19, systemic uncertainty surrounding global reliance of the stock market and the drive to find a vaccine makes form a muddled picture. From the technical standpoint, I will be waiting for price to fade and a test 15.97x before instigating longs towards 18.5x. The channel will provide limited security here. SL should be placed under local support. Best of luck and Godspeed trading.
This is not ideal for me. I would be happier seeing a +50% wave 2 retracement to test the 13.766 first before the next leg higher. This structure has me suspicious and opens the door for an alternative count, labelled in black as a primary degree ABC zig-zag. We might call this a corrective holding pattern of sorts. In some respects, this alternative and considerably 'less bullish' count fits more in line with the present fundamentals: Covid-19, systemic uncertainty surrounding global reliance of the stock market and the drive to find a vaccine makes form a muddled picture. From the technical standpoint, I will be waiting for price to fade and a test 15.97x before instigating longs towards 18.5x. The channel will provide limited security here. SL should be placed under local support. Best of luck and Godspeed trading.