Wednesday, May 5, 2010

Silver - Alternate and preferred

Boys, attached is the daily chart of silver with the preferred (white) labels and the alternate (red labels). The preferred counts begin from the wave (B) top and count the price action since as a (1)-(2), 1-2, with the wave 2 top occuring yday. The drop from that high at 18.86 looks impulsive to me, but we need to wait for more action to confirm a 5 wave drop that looks more like an A-B-C zigzag.

The other count remains valid since something very interesting seems to have happened. The drop from the B wave (circled) high counts nicely as a wave (1) in red, and the resulting thrust higher wa an expanded flat that completed (A) in red. The rule for an expanded flat is that the B wave cant be more than 200% of A, and surprisingly, the B wave just fell shy of breaking that rule. The ensuing rally, since we count this as the (C) wave of a FLAT, needs to be an impulse or an ED, and it is the latter it is. With the upsloping line connecting 2-4 broken on a closing basis, maybe the bullet has left the gun. Let the markets tell us what to do. God Bless.


NBD said...

Dear Akshay,

I go with your preferred count... Excellent Work.