Price of Silver Is Trading In a Triangle, What Does This Mean?
In the market, there are no guarantees, only probabilities. That is why traders must always look and prepare for different scenarios.
If you have been following my analysis on Silver for a while you have probably seen some of my analysis suggesting Silver could rally to around $22 articles.
However, my bias has changed in the last few weeks as the price is unable to move in five-wave higher to break 2019 high. Instead, XAGUSD has been moving sideways. This behavior reminds me of more and more of a triangle correction under construction.
See the idea on the chart above.
The Elliott Wave Principle states, that triangles are sideways corrective patterns, constructed of five waves, labeled A-B-C-D-E, where each wave is smaller than the previous one unless it is an expanding triangle.
It appears that the Silver exchange rate has almost completed wave D to the downside during Friday's session. If this count is correct, we should expect another rally in the face of wave E, which would complete the whole triangle.
By any means, if my assumption of a triangle is right, wave D should not breach wave B low, and wave E should stay below wave C high. According to the Elliott Wave Principle, triangles precede the last move of the larger sequence. That is, Silver should resume its larger degree downtrend as soon as the correction is over.
What's your thought about Silver?
If you have been following my analysis on Silver for a while you have probably seen some of my analysis suggesting Silver could rally to around $22 articles.
However, my bias has changed in the last few weeks as the price is unable to move in five-wave higher to break 2019 high. Instead, XAGUSD has been moving sideways. This behavior reminds me of more and more of a triangle correction under construction.
See the idea on the chart above.
The Elliott Wave Principle states, that triangles are sideways corrective patterns, constructed of five waves, labeled A-B-C-D-E, where each wave is smaller than the previous one unless it is an expanding triangle.
It appears that the Silver exchange rate has almost completed wave D to the downside during Friday's session. If this count is correct, we should expect another rally in the face of wave E, which would complete the whole triangle.
By any means, if my assumption of a triangle is right, wave D should not breach wave B low, and wave E should stay below wave C high. According to the Elliott Wave Principle, triangles precede the last move of the larger sequence. That is, Silver should resume its larger degree downtrend as soon as the correction is over.
What's your thought about Silver?
Commentaire:
The triangle pattern I'm tracking on Silver has been invalidated. We will switch to alternative count and I will update later.
