Silver Elliott Wave Count 1.18.2011

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Tools:
Simple Moving Average( SMA ) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.

Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance

Silver
Silver 1/18/2011 1H Chart

- 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.

Silver 1/18/2011 Day Chart
- 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 .

Will Silver rally after wave C? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist

 



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Commodities

Referenced Stocks: SMA

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