In our previous post we presented the possibility of Silver being in a macro triple three correction for cycle wave (2), and thus still needing a lower low in the 16 area.
However, we are now presenting an alternative scenario that we believe has same probability.
Given the lenght of the last leg up, and the nature of the descent from 24.56 top ( a 3 wave, labeled as a in the chart above), we believe that silver may have bottomed and may be doing a 335 structure in wave 4. Hence, this is our plan:
we will keep our short position from @24.32 until we see a five wave structure targeting 22.1 (wave iv of previous degree and double top target); at that point, we will take profit. We will then carefully analize the price action.
Only if the price action then appears to be corrective, and provide evidence for it being a B of Z, we will short again.
We will update below.
GMR
However, we are now presenting an alternative scenario that we believe has same probability.
Given the lenght of the last leg up, and the nature of the descent from 24.56 top ( a 3 wave, labeled as a in the chart above), we believe that silver may have bottomed and may be doing a 335 structure in wave 4. Hence, this is our plan:
we will keep our short position from @24.32 until we see a five wave structure targeting 22.1 (wave iv of previous degree and double top target); at that point, we will take profit. We will then carefully analize the price action.
Only if the price action then appears to be corrective, and provide evidence for it being a B of Z, we will short again.
We will update below.
GMR
Trade active
Possible head and shoulders that will bring price to our first target.
Playing it safe with stop loss on entry
Trade closed manually
short closed at 23.51 for a profit of 1.4% of equity. Wave 4 can already be finished. Price action is too choppy and undecided for us to keep short.Trade active
bearish poc and lenght of this last 3 gives us a good setup for another try. Short from @23.93 stop loss 24.16 for 0.4% risk.
Trade closed manually
last scalp closed @23.68 for 0.4% profit. Now out from this setup.Trade active
we were ok with the trades and profits we made. But the third touch at the main descending trendline with the inverse hammer is a high probability setup. Bearish original count is still a possibility. Entry @23.81 stop loss 24.31 risk 0.6%
Trade closed manually
too much consolidation here.. closed at support 23.4@ for 0.5% of profit.This looks more like a wave 4 as labeled in the above chart. There is still the possibility of more downside but will reevaluate when consolidaton ends and the range is broken. Total profits from silver's trade: 2.3% of equity.
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Related publications
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.