Lots of bullish talk lately on gold and silver and that these precious metals are on the cusp of a next bullish cycle, with analysts and traders alike predicting the Fed will cut interest rate by the second quarter of 2024. I spoke to a silver trader this morning and he was extremely bullish on silver and even told me to start accumulating it.
One EW analyst that I held great respect over the years labelled the climb from Mar to Aug 2020 as wave 1. And the subsequent meandering cycle as wave 2. I, on the other hand, am bearish.
Based on the depicted chart, I labelled the price trend from Mar 2020 to the present day as a double three combination (WXY). W as a zig zag, followed by a small X. Y as a flat, with a ABC wave pattern. Wave A of Y is a simple zigzag, Wave B of Y is a ABC (flat) pattern, with its wave C as a expanding ending diagonal. Wave C of Y is also an ending diagonal. The question for now is whether the wave 5 of wave C is completed. It has sufficient waves to be considered completed. A breakdown under the 2-4 trendline will be a first estimation that the reversal process has begun.
My target price for silver is in the range of 10 to 11 USD. And that's when I will start accumulating big time! Until then, I will stay on the sideline and maybe considering shorting it.
PS, The chart is plotted using a semi-log scale
One EW analyst that I held great respect over the years labelled the climb from Mar to Aug 2020 as wave 1. And the subsequent meandering cycle as wave 2. I, on the other hand, am bearish.
Based on the depicted chart, I labelled the price trend from Mar 2020 to the present day as a double three combination (WXY). W as a zig zag, followed by a small X. Y as a flat, with a ABC wave pattern. Wave A of Y is a simple zigzag, Wave B of Y is a ABC (flat) pattern, with its wave C as a expanding ending diagonal. Wave C of Y is also an ending diagonal. The question for now is whether the wave 5 of wave C is completed. It has sufficient waves to be considered completed. A breakdown under the 2-4 trendline will be a first estimation that the reversal process has begun.
My target price for silver is in the range of 10 to 11 USD. And that's when I will start accumulating big time! Until then, I will stay on the sideline and maybe considering shorting it.
PS, The chart is plotted using a semi-log scale