Elliott wave Analysis: Silver Can Be At The End Of A Big Triangle Pattern
Silver moved lower this week but found a support at 14.70 where trendline of previous two swing lows caused a bounce. Actually, this trendline can be part of a wedge, maybe even an ending diagonal for wave C of D so a new higher recovery can be around the corner. Let us keep in mind that triangle on a daily is till incomplete, so ideally current rise will extend above 15.06 and will represent part of a wave E.
On the daily charts of silver, we can see that metal came down in the last few weeks but so far only with three legs so it can be wave D of an ongoing triangle pattern in a higher degree wave B). If that’s the case then market will see another three wave structure for E before real weakness may step in.
A Triangle is a common 5-wave pattern labelled A-B-C-D-E that moves counter-trend and is corrective in nature. Triangles move within two channel lines drawn from waves A to C, and from waves B to D. A Triangle is either contracting or expanding depending on whether the channel lines are converging or expanding. Triangles are overlapping five wave affairs that subdivide 3-3-3-3-3.
Triangles can occur in wave 4, wave B, wave X position or in some very rare cases also in wave Y of a combination.
Example of an Elliott wave triangle:
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