Hello Traders,
There has been a lot of talk about the precious metals recently (Gold / Silver) with many different reasons for the resurgent interest in precious metals ranging from the classic "store of value" to "finite resource" to "growing lack of trust in fiat currencies".
From a Fundamental Analysis point of view I don't really know anything about Silver apart from the basics so if you are reading this and know your stuff about Silver please put it in the comment section.
This chart is from a TA perspective.
Since the beginning of 2002 the price of Silver went on a bull run which peaked in April 2011. That run lasted about 10 years with gains in the region of 1125%. Very nice if you were long on Silver. From an Elliot Wave perspective the price printed a nice set of bullish impulse waves.
Then over the course of the next 4.5 to 5 years the price retraced to the 0.786 Fibonacci level, pretty much to the wick. WickHunter loves it when the market obeys Fibonacci. This entire move looks like a massive Wave 1 and Wave 2 has been completed and price is gearing up for a wave 3.
"If" this is the case and tbh that's exactly what it looks like, then Silver could go to the moon here.
I've used the Fibonacci extension tool on that wave 1/2 and plotted the 1.618, 2.618, 3.618 and 4.236 extensions as targets.
Nobody knows which of the targets will be hit, only time will tell.
WickHunter
There has been a lot of talk about the precious metals recently (Gold / Silver) with many different reasons for the resurgent interest in precious metals ranging from the classic "store of value" to "finite resource" to "growing lack of trust in fiat currencies".
From a Fundamental Analysis point of view I don't really know anything about Silver apart from the basics so if you are reading this and know your stuff about Silver please put it in the comment section.
This chart is from a TA perspective.
Since the beginning of 2002 the price of Silver went on a bull run which peaked in April 2011. That run lasted about 10 years with gains in the region of 1125%. Very nice if you were long on Silver. From an Elliot Wave perspective the price printed a nice set of bullish impulse waves.
Then over the course of the next 4.5 to 5 years the price retraced to the 0.786 Fibonacci level, pretty much to the wick. WickHunter loves it when the market obeys Fibonacci. This entire move looks like a massive Wave 1 and Wave 2 has been completed and price is gearing up for a wave 3.
"If" this is the case and tbh that's exactly what it looks like, then Silver could go to the moon here.
I've used the Fibonacci extension tool on that wave 1/2 and plotted the 1.618, 2.618, 3.618 and 4.236 extensions as targets.
Nobody knows which of the targets will be hit, only time will tell.
WickHunter
Note
Looking at the monthly chart the price is getting close to the 100 MA and I am expecting some kind of price interaction. This could act as a temporary resistance before price manages to break through. Note
Having a look at Silver, price IS overbought on the weekly but no bear div yet. No bear div on the daily either. 4 hr is showing hidden bull div. "IF" that pitchfork I have drawn is going to play ball and interact with price nicely then we have broken through into the next band. Price does look like it was rejected then supported by that band change. I can see the price wanting to test the monthly 100 MA. Note
This could be a good entry on Silver here. Price is bouncing on the monthly 200 MA and daily 100 MA. There is a trend line there also. If it holds this looks good. Note
Silver cannot retrace much more without breaking the top of wave 1 and invalidating any bullish momentum in this market. Note
Just taking another look at the silver chat and it looks primed for another leg up. Ive marked the resistance that price had on the weekly 100 and 200 MAs. Price has now found support on those MA's. As i said previously, breaking the top of wave 1 territory would look extremely bearish and invalidate any bullish momentum in this market but i'm expecting a wave 5 to happen. I have marked resistance on that trend line around the monthly 100 MA, price could stall here or break straight through it. I also think we could see some kind of extended wave 5. Stopping around the 3.236 fib with a higher wick would technically be a HH and look bullish but also look like a market double top. Price could try for the 3.618 as a clear sign of bullishness. If you look at the last set of EW in 2016 the wave 5 looks quite extended yet still made a LH. A solid looking HH would bullish clarification. Note
Looks like silver wants to go for it here.Note
Yeh, nah. Breakdown of market structure here. Note
The physical demand for Gold and Silver is high and the actual price for 1 oz Silver is much higher than this ETF price. I reckon this market is so broken this price does not mean anything anymore. Saying that, its nuts how price bounced from that pitchfork line. Note
Note
Yes silver going on a bull run from here. 
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.