Capturing the reversal in precious metals with the application of Elliott wave, Channels and Moving average.
Gold and Silver has been showing relief sign from the mid of May 2017 and prior to that sharp downtrend was witnessed. Post the sharp fall Silver formed basing formation for 2 to 3 days and then retraced the last leg of down move in faster time which provided the first confirmation that trend is reversing on upside. Apart from that 20 periods Exponential moving average which acted as resistance during the down move, was taken out decisively which provided further confirmation that trend has reversed on upside. Below is the part of research taken from “The Commodity Waves Short Term Update” on Silver where we were able to capture the up move.
Silver 60 mins July contract chart: (Anticipated on 16th May 2017)
Silver 60 mins July contract chart: (Happened till now)
Part of research published on 16th May 2017
“As shown in 60 mins chart, recent up move indicates that minor wave a has completed in form of 5 waves and minor wave b has started on upside. This will retrace the prior down move and hence rally is going to be corrective in nature. 20 periods EMA which was acting as resistance will act as support now. As per this 38100 will act as important support. From intermarket perspective, Comex Silver has been forming positive bars from last 4 sessions. This will keep bias on positive side.
In short, Silver is retracing the prior down move. As long as 38100 is intact on downside, prices can move towards 39000 levels.”
Part of research published on 17th May 2017
“As compared to Gold, Silver is outperforming over short term and has been managing to consolidate post the short term up move. This suggests that deeper retracement on upside might have started.
As shown in 60 mins chart, Unlike Gold, Silver has retraced the last leg of down move in faster time and has made higher high higher low pattern. This is precursor to know that upside trend is ongoing. As per polarity reversal, 20 periods EMA will act as support now. Hence short term traders can use this EMA as stop loss. On downside 38100 is the support and as per wave perspective, minor wave b on upside is ongoing.
In short, Silver has support at 38100 level. Move above 38900 will take prices towards 39500 levels.”
Part of research published on 23rd May 2017
As shown in 60 mins chart, prices have completed minor wave a and post the same minor wave b is ongoing which has formed Zigzag correction pattern. As of now minute wave (c) is ongoing which is testing the channel resistance and hence some consolidation cannot be ruled out. On downside 39200 is the important support where channel support along with moving average is placed.
In short, Silver trend is positive but expect some consolidation. 39200 is the support and 40500 is the next level to watch on upside.
Part of research published on 26th May 2017
From intermarket perspective, Comex Silver has been in sideways to negative action and overall structure suggests that breakout should take place on upside. On downside 16.90 is the support and move above 17.25 will take prices towards 17.45 levels.
As shown in 60 mins chart, prices are in expanding structure and from last few days it is trading in minute wave (x). After completion of the same, prices should move higher in form of second standard correction. On downside 39485 is the immediate support and move above 40000 will indicate that next leg on upside has started.
In short, Silver can move higher once 40000 is taken out with strong momentum and then expect prices to move towards 40500 or further higher levels.
Happened: We managed to capture the reversal in Silver few weeks back based on the concepts of Elliott wave, Channels, Momentum and Bar technique. We have been mentioning our bullish stand on Silver since it took out 38200 level in the mid of May 2017. Post the same, channeling technique and Elliott wave pattern has helped us to capture the move till 40500 level which is recent high.
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