Silver - A Perfect Elliot Breakout

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Date: 22/02

Even though most of our focus is usually on Gold here, the chart for Silver looked too good to ignore or share!

The structure for Silver shows that an ABC has completed at a low of 64. This could indicate that silver has completed its Wave 4 and is ready to begin its rally with a new impulse starting Wave 5. The chart below shows a breakout from the corrective resistance and provides us with a clear invalidation, stop loss and set targets.

If the correction in fact is not over and we are still in Wave 4 - Our targets still remain 92.96 and 99.636 which still provide 1:3 return from the breakout point. These are the minimum levels of retracement that will be needed in order for this to qualify as a retracement B Wave.

We must be cautious and book profits at these levels as well as trail longs incase a sharp reversal does arrive.

If the reversal is nowhere in sight and the structure continues to follow all impulse rules we are then looking at a target of 121+ in Silver which currently stands at a 1:7 return from the break point.

Charts below

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