Bullish Descending Bull Flag / Bullish Descending Triangle in $SILVER?
Hi, I'm in the midst of trying to fiqure out some basics in Elliott Wave, maybe not dedicated to it enough as l'm trying to study Mining etc and relation to precious metal trading.
Anyways the $Silver price right now looks like it might be forming a bull flag with five a-b-c-d-e counts? or a bullish descending triangle?
Your opinions would be much appreciated and a suggestion of easy reading into understanding elliott wave if possible. Thank you.
Kenny Says: Yes, the Silver chart is following a very similar pattern to Gold and looks to be bullish in the medium/long term.
An Elliott Wave theory guideline is that prices will find support at the previous 4th wave, and it could be argued that for Silver, that was in Jan 2011.
Adding to the bullish case is the facts that the decline from the high was a Fibonacci 8 months and from there it has developed a bullish 'tweezer' bottom.
I produced an Elliott Wave Theory PDF quick start guide that will give a good introduction, but essential reading is Precters Elliott Wave Principle. You can get free access to these through the Elliott Wave theory section on this website.
You can also see my Elliott Wave charts that I post from time to time in the trading forums.