Post forming an interim top near 16.30 levels Comex silver has been trading lower since then. We were able to anticipate its down move even before it began just with the help of basic indicator of Fibonacci retracement. The 61.8% levels in Fibonacci number plays a very important role and we can see how well it worked even in the Comex silver.
We covered Comex Silver in our Monthly report and were accurate in capturing the reversal. Below is the chart showing detailed analysis published in our Monthly report- “-“The Financial Waves Monthly Update”
Comex Silver daily chart: (Anticipated as on 09th February, 2019)
Comex Silver daily chart: (Happened)
(Below is the extract of the research taken from the monthly report.)
Precious Metals have been moving in a sideways to negative fashion from mid of 2016. However this correction has brought prices at the very important juncture. Gauging to trend of Comex Silver is vital as it helps to form trading and investing strategy for MCX Silver. Let us look at the medium to long term structure of Comex Silver.
Elliott wave perspective: As shown on daily chart, prices formed a triangle pattern within wave (X) and post its completion there was a strong selloff on downside. The entire fall looks to have completed wave a and now we are seeing wave b retracement on the upside.
In a nutshell, the outlook for Silver looks to be in matured stages of up move and break below $15 will resume the downtrend. For a bigger degree uptrend to resume we require a move above 17 levels as this will indicate a multi-month low has been formed. As long as 17 levels are protected we can expect range bound movement followed by the downtrend.
The above chart clearly reflects that even by using a basic method of technical analysis one can analyze the probable turning juncture. Fibonacci series works amazingly well in capturing reversals and also getting a view for conservative target.
We have been using such simple techniques combined with advance Elliott wave analysis in our daily equity research report published under the name “The Financial Waves short term update” Subscribe Now to capture good trading opportunity over short term in stocks as well as in Indices like Nifty and Bank nifty. Get access here