Silver - Has bottomed or will bottom near 18.17

Silver - Has bottomed or will bottom near 18.17

Silver - Has bottomed or will bottom near 18.17  

The correction from 20.57 in wave iv either completed with the test of 18.39 or will complete soon near 18.17 for the final impulsive rally higher to 21.58 and maybe even closer to 23.00 from where a new long term decline to below 13.65 is expected.

Short term a break above minor resistance at 19.04 will confirm that the correction in wave iv is complete and wave v higher is developing. While a break below minor support at 18.53 will indicate that a final decline closer to 18.17 will be needed to complete wave iv and set the stage for the final rally in wave v. I do slightly prefer the more bullish option, but will let the breaking above 19.04 be the deciding factor. 

Silver - Is testing important resistance at 18.51

Silver - Is testing important resistance at 18.51

Silver - Is testing important resistance at 18.51  

Silver is trying to break above the Inverse S/H/S bottoms neckline near 18.00 and more importantly above resistance at 18.51 and if the later is broken too, then a rally towards the measured S/H/S target at 22.05 should be expected as a minimum, but this rally could easily extend higher towards 25.10. 

The Inverse S/H/S neckline at 18.00 will now shift from resistance to support and will ideally protect the downside, but only a break below support at 17.52 will question the break above the neckline. 

Silver - Is leading the way lower

Silver - Is leading the way lower

Silver is leading the way lower

Silver has clearly broken below its triangle support-line and the measured target from the triangle is near 12.90. Looking back this target is very close to the 2009 June and July lows at 12.43 and at 12.52. However, we should keep an eye on support near 13.58 as this is where the second zig-zag correction will be equal in length to the first zig-zag and it will also mark the distance, where wave v of C has travelled 38.2% of the decline from the origin of wave i to the bottom of wave iii subtracted from wave e of the triangle.

Short term we should see a back test of the broken triangle support-line, but once this minor correction is over, look for a new decline lower to 13.58 and maybe even 12.90.

Silver is clearly leading the way lower as gold its 2013 lows at 1,180 and 1,182, but is expected to break below these two supports for a decline closer to 972 and maybe even lower 887.  

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2014-05-26
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2014-09-14
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2014-05-28
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