Summary
Long term outlook: Up
Medium Term Outlook: Down
Short Term Outlook: Sideways to up
Medium Term Revision Point: Break above 21.31
Potential Medium Term Target: 8.45 and lower
The move in Silver, during the last week, was of a corrective nature. This correction is possibly a second wave of a, potentially, medium term downward move. However, considering the time length and the depth of the correction, this correction does not seem to be over just yet. As the main image shows, we expect the next few days to complete this correction in two more phases. In the first phase, the price is likely to fall close to the 16.88 or lower, from where we expect to see the last leg of this correction going towards 17.78 and above, but staying below the December 3, 2009 high at 19.46.
In view of our current outlook presented above, we shall be looking for low risk, high probability buy signals in the vicinity of 16.88, 16.65, 16.51 and 16.41 to start long positions with a target of 18.46 to 18.90 in sight. If, the presented count is to hold good, we should see the prices stalling and a downward move starting while remaining below the 19.46 level. Subsequently, we would, therefore be looking for low risk, high probability sell signals to emerge in the vicinity of 18.5 to 18.90.
If, however, we get a break above the December 3 high at 19.46, we shall be forced to review our wave count.