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Silver Elliott Wave Count 1.18.2011
Written by article default Tuesday, 18 January 2011 14:48
Silver
- The 1H Chart shows a market. that might be attempting a correction rally to the decline that started on Jan. 11.
- The RSI has a bullish divergence, but could still be providing a negative reversal (higher RSI top, lower price top, suggesting another bearish attempt).
- The count could have completed a wave 1 to a wave C. We may be in wave 2 in the European session. We should anticipate resistance and topping between the 38.2% and 50% retracement levels. We can than check to see if an impulse wave develops that would be the wave 3 of C.
- The day chart shows that the market is indeed declining after seeing such as extended bearish divergence with the RSI. The 28.00 level is giving support. It is also 50% retracement of a rally since 25.00.
- The RSI shows that despite the correction decline, the market is still bullish as its reading remains above 40.
- The fibonacci on the chart shows that if 50% is broken, 61.8% will be the next target at 27.30. Our swing projection seen in the 4H chart is a bit lower, at 26.90. Below that is the 26.50 pivot.
- Therefore, a break below 28.00 conservatively targets 27.30, and possible can extend lower to 26.85, and 26.50.
- The more aggressive retracement is also in sight to 25.00.