close icon

Silver Has Been Great. Now What?

It has been less than a week since we published “What Is Next for Beaten Down Silver?” on March 29th. This article came right after a steep decline of about a dollar an ounce in the price of silver. Its purpose was to show how we could predict reversals, but also to warn traders for an upcoming corrective recovery, before the bears return. We thought this scenario was highly probable, because of what the Elliott Wave Principle allowed us to see on the 4-hour chart of the precious metal given below.
silver 29.3.16
The 4-hour chart suggested silver has completed its five-wave impulse to the north and was already trading within the corresponding three-wave correction. It appeared the market was going to choose an (A)-(B)-(C) zig-zag correction, but in order to further support the count, we needed to take a look at the 30-minute chart too, which made the internal structure of the sell-off from 16.13 to 15.04 visible. It is given below.
silver 29.3.16 30m
And the 30-min chart showed us that the recent decline was an impulse in its final stages. According to the theory, every impulse is followed by a three-wave correction in the opposite direction. That is why we thought wave (B) to the north should be expected, before wave (C) to the south begins. The next chart shows how is silver trading right now.
silver 5.4.16
As you can see, silver began recovering almost immediately after the forecast was published. The metal rose from 15.04 to 15.51 in an a-b-c zig-zag for wave (B). However, the Wave principle gave us a warning that “this is not the time to go long, because the bulls might get tired very soon and once they do, wave (C) should take the price of silver below 15.00.”
Last Friday, April 1st, silver prices fell as low as 14.78. That is how, thanks to Ralph Nelson Elliott and the principle he discovered in the 1930s, we are able to predict consecutive market swings in both directions in 2016. As far as we know, there is no other forecasting method, which is able to achieve such accuracy.
From now on, silver has fulfilled the minimum requirement for a 5-3 wave cycle, which means the trend is supposed to continue in the direction of the five-wave sequence. In addition, the relative strength index is showing a bullish divergence between waves (A) and (C). If this is the correct count, the bulls should take the wheel and try to take the price of silver back to the 16.00 area.

What other markets are you interested in? Prepare yourself for whatever is coming. Order your on demand Elliott Wave analysis now or pre-order one of our 8 Premium Forecasts due out every Monday. Stay ahead of the news in any market with the Elliott Wave principle.



Stay informed with our newsletter

Latest Elliott Wave analysis on different topics delivered to you weekly.

Privacy policy
You may also like:

Silver – Elliott Wave Setup Can Send Price 50% Higher

The price of silver has been hovering between $30 and $21 per ounce for over a year now. Despite growing fears of persisting inflation, the precious metal has actually been declining in recent months. As of this writing, it is trading below $22.40 and near the lower boundary of its range. However, silver ‘s disappointing…

Read More »

Silver Price Going for $19 Before Retracing to $16

The price of silver, otherwise known as a safe-haven asset along with gold, crashed sharply as the coronavirus panic swept equity markets. XAGUSD fell to $11.64 on March 18th just as investors needed a refuge the most. But the precious metal has appreciated significantly since the depths of the selloff. As of this writing, silver…

Read More »

Gold is Crashing. Elliott Wave Somehow Predicted It

Common sense dictates that in a time of crisis demand for safe-haven assets jumps. The price of gold, for instance, the most sought-after asset in difficult periods, climbed to an all-time high of $1921 shortly after the 2008-9 market crash. This time though, as the world economy is on the verge of grinding to a…

Read More »

Gold Fails as a Safe Haven Amid Coronavirus Panic

The S&P 500 was down 14.4% for the week at one point Friday on fears the coronavirus outbreak is going to become a worldwide pandemic. It is common knowledge that investors turn to gold when stocks and other risky assets decline. Last week, however, that wasn’t the case. While stock markets around the globe were…

Read More »

Silver Bears Discouraged by Fibonacci Encounter

We last wrote about silver in March 2019, when the precious metal was hovering slightly above $15. Our analysis of its 4-hour chart gave us plenty of reasons for optimism. And indeed, six months later in September the price reached $19.65. Currently, silver is trading near $17.75, up from $16.53, but still down from that…

Read More »

Gold ‘s Surge and US-Iran Have Little In Common

Gold climbed to a six-year high on rising tensions between the US and Iran following the assassination of Iranian General Qasem Soleimani. The safe-haven asset reached $1590 earlier today as #WorldWarThree started to emerge on Twitter. We hope WWIII remains just a hashtag. In the meantime, we are once again baffled by how the media…

Read More »

Gold Traders Better Off Ignoring the News

In our previous article about the precious metal readers saw how the Elliott Wave principle put us ahead of gold ‘s $72-decline from $1531 to $1459. In short, the hourly chart made us think a three-wave decline from $1555 was still in progress. Hence, the bears remained in charge and more weakness could be expected.…

Read More »

More analyses