Silver Daily Chart Review

 

 

Since the silver bull market began in late 2015, it rallied in what I saw was an instant bear market rally, but the bearish readings were just too strong to have it end anytime soon.   Silver is the king of diagonal wave structures and they should be labeled as such. Most of the time room does not allow us to do that.   I believe that silver and others have a real high probability of being in a “D” wave Primary degree bull market.  This “D” wave needs one big zigzag to confirm it, but we have to keep the old “B” wave around just in case we have to bring it back.  We don’t have to do that until this run has completely finished.

Obviously late 2016 was another strong bottom, but how strong would be best explained with the degree levels. If this late 2016 bottom is a “B” wave in  Intermediate degree, then we have to use our knowledge of the idealized charts, to figure out exactly what patterns and at what degree level we need to finish off a “C” wave bull market.

What we need  is the technical requirement for an inverted zigzag. I have drawn out so many of them, in idealized fashion and as simple templates, yet not to many wave analysts can fill in the templates, when I challenge them on it.  A zigzag needs a 5-3-5 run and the 5 waves should always alternate, even if the first set of 5 is a bit different than the second set of 5 waves, then this is fine. In this second set they are still diagonal waves, but they are much smoother and overlap much more, making it much harder to see the connecting zigzags. 

The “C” wave we need must break out to new record highs, and they can have a nasty habit of extending to the likes we seldom ever see. This still may take all year to do, but finding the first Minor degree wave one is always tricky to get, as diagonal waves are born to fool us. 

Even now the correction in silver has still some up and down moves to go, before it is ready to start on the next leg up. 

 

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