Silver: Wave 3 of 3 after a major swing low
Updated
XAGUSDI spotted the AB=CD correction pattern on the Silver chart and built out this idea around it. I will post some more images in the comments which give more context, but essentially it seems that we are about to being wave 3 of 3 (a powerful impulse wave) in a bullish wave cycle. This wave cycle seems to be moving away from a long-term low, so could end up being the start of a major new trend.
Wave counts are very subjective and often catch you out, but I do really like the AB=CD correction, which you can see here highlighted with the Fib Trend Extension tool.
Note
Here you can see the position of the swing low, a potential wave count (this is a very rough idea, I am more confident of the smaller scale wave count that this one) and the area we have analysed above highlighted in greenNote
USD caught a big bid today after a positive NFP and I think it may continue to drive a deeper wave 2 correction in XAGUSD. Could be a good opportunity to add a position but not until we can see that USD is out of favour again. Also of interest, stocks are correcting. Interesting to see where the safe haven is found...Note
Wave 2 did indeed drive quite a bit deeper. Looks like weak stocks and dollar could kick in now and I think we have seen the bottom of wave 2. Still long
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.