Silver is camped on top of the 78.6% retracement level -- this level is rooted within the fibonacci sequence and is considered the retracement of last resort.
The up trend from March breaks down as a double zigzag in Elliott Wave terms, this is a corrective structure implying that the whole trend is likely to be retraced at some point in the future.
I prefer break out trades in these scenarios...let the market tell you when it is ready to move in the direction you think it will. In the break out scenario, the stop loss would go just above the swing high. If silver bumps higher over the next couple days then the stop would go above that high if the breakdown would occur.
If interested in more Elliott wave analysis, let me know.
Cheers!
The up trend from March breaks down as a double zigzag in Elliott Wave terms, this is a corrective structure implying that the whole trend is likely to be retraced at some point in the future.
I prefer break out trades in these scenarios...let the market tell you when it is ready to move in the direction you think it will. In the break out scenario, the stop loss would go just above the swing high. If silver bumps higher over the next couple days then the stop would go above that high if the breakdown would occur.
If interested in more Elliott wave analysis, let me know.
Cheers!
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www.seethewaves.com - A school to learn how to read charts & Elliott Wave Theory.
EW Express - bit.ly/elliottwaveexpress
