Wednesday, December 5, 2012

Dec. 5, 2012 - 10:25 am - Chicago

Silver appears to have completed a wave D correction this morning and I believe is poised to rise in the coming days and test the recent high at $35.44

My favorite trade proxy for Silver is Silver Wheaton (SLW), which I believe is also bottoming in the low $35 range and I expect it to rally to the high $38/low $39 level before a final corrective decline ensues for Wave 2 in its upward trend.

I currently have a target of $32 for the final wave down... as there are several converging indicators of support there:

a) the 50% fibonacci retracement for Wave 1 is $31.78
b) the rising trendline on the weekly chart for SLW intersects near $32; and
c) because Silver is due to sell-off soon and test the declining support trendline of the past 2 years (near $28), SLW ought to get sold off rather dramatically if that should occur.
d) SLW's 200-day Moving Average is slightly above $32 at $32.43.

Benji Miller

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