(Elliott wave) Silver- Buy The Dip
Updated
Metals are experiencing an upward trend this week due to geopolitical tensions between Israel and Hamas. During times of uncertainty, investors tend to favor safer and more stable assets and commodities, as they are less inclined to take risks. Stocks are generally viewed as riskier assets during such periods, and even currencies can be perceived as uncertain, except for the US dollar.
This week has witnessed a significant surge in metal prices, particularly silver, which has risen by nearly 10% from its low of 20.70. This price movement has been quite substantial, attracting the attention of both investors and traders who may be considering joining this upward trend. Looking at it from an Elliott wave perspective, silver appears to be within the middle of a broader range, and the breakout might need some more time until the A-B-C-D-E triangle pattern is completed. However, when the breakout eventually occurs, it is likely to lead to sharp and profitable moves.
But what exactly is a triangle pattern? A triangle is a continuation pattern characterized by A-B-C-D-E subwaves, with each leg containing corrective subdivisions. Typically, the breakout point occurs at the swing high of wave D in an uptrend or at the swing low in a downtrend. Until one side of the triangle is decisively breached, the price can remain trapped within this range for an extended period. Therefore, it's essential to adapt your trading strategy between significant levels during this time.
Given the circumstances, I intend to exercise caution and remain mindful of my minimum upward projection as I adjust my trading plan accordingly. My approach will be to consider long positions after a pullback. Support is at 21-21.50. Upward projection at 24-25.
Trade well, and have a nice weekend.
Grega
This week has witnessed a significant surge in metal prices, particularly silver, which has risen by nearly 10% from its low of 20.70. This price movement has been quite substantial, attracting the attention of both investors and traders who may be considering joining this upward trend. Looking at it from an Elliott wave perspective, silver appears to be within the middle of a broader range, and the breakout might need some more time until the A-B-C-D-E triangle pattern is completed. However, when the breakout eventually occurs, it is likely to lead to sharp and profitable moves.
But what exactly is a triangle pattern? A triangle is a continuation pattern characterized by A-B-C-D-E subwaves, with each leg containing corrective subdivisions. Typically, the breakout point occurs at the swing high of wave D in an uptrend or at the swing low in a downtrend. Until one side of the triangle is decisively breached, the price can remain trapped within this range for an extended period. Therefore, it's essential to adapt your trading strategy between significant levels during this time.
Given the circumstances, I intend to exercise caution and remain mindful of my minimum upward projection as I adjust my trading plan accordingly. My approach will be to consider long positions after a pullback. Support is at 21-21.50. Upward projection at 24-25.
Trade well, and have a nice weekend.
Grega
Note
Elliott Wave Update:Silver Is Trading Close To Technical "BUY" Level
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