Elliott Wave Analysis – Silver
The comments below are an edited and abridged synopsis of an article by ESI Analytics Limited
Based on technical analysis, silver could turn out to be the true superstar within the precious metals complex. The swings in silver and gold went in the same direction, but there was a bigger magnitude in silver. There is no reason why this
There are some parallels betweensilver and gold with regard to their technical structure. Both were in a bearish trend from the highs in 2011.
It appears trendless from that point in time until today. This is more or less analogous to gold. Moreover, price action in silver shows divergence during the past two years. This means that it is losing selling pressure. We have recently seen depressed sentiment and position readings throughout the precious metal spectrum. These are technical signs that silver is close to a significant bottom.
The last major bottom was roughly around 13.65 in late 2015. Recent action can be considered as a technical retest of that bottom. It is unclear whether the retest holds at this point in time. Silver’s technical signs suggest that it is close to a bottom. The coming correction will be retracing some portion of the trend that has unfolded since 2011. It is most likely sizeable, and will result in double-digit gains.
