Silver Intraday Crash Review: Has It Gone Far Enough?

This morning the intraday low touched $16.84 and has now turned up a bit. As much as I would like to see the end of this correction, we have to wait and see what the next rally in silver will bring us. Let’s say that silver starts a rally, but this rally is very choppy. It heads back up to $17.40 and at this point it could be another 4th wave rally and another 5th wave down would have to follow. 

That would be a potential “A” wave of a bigger and longer correction, and we would not even be a third of the way through this correction. 

Between gold and the silver daily charts they have diverged from each other, to where the corrections are no longer acting in sync. Gold hit its corrective bottom in December of 2016, while silver bottomed in July of 2017. This is about a 7 month difference between the two which is a big spread or divergence. 

Silvers correction fits better into a triangle at this time, which, if true gives us a clue to the end of a potential rally. This potential wave 1-2 correction may be too high of a degree, so we still have lots of room for silver to move up. Many don’t see the difference between the two, but from my perspective, it stands out like a sore thumb which can’t be ignored. Until we get some really crazy expensive ratios, this bull market is still alive.

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