Good afternoon, dear traders. Today I want to consider the hourly chart of silver. There is a possibility of correction from current levels (around 32.50) to 34.00. On the evidence forming correction fractal structure (pattern) with sufficiently high levels of structure and OI. Also, the visual extrapolationsuggests the similarity of real and mathematical patterns.
Last edited by Pipzilla; 03-07-2012 at 11:48 AM.
On the daily chart, silver price movements we observe two possible scenarios. See formed head & shoulders pattern on a daily basis, penetrating the neckline, back to school line and continuing decline in the value of silver against the U.S. dollar (USD). If we consider that this is an election year in the U.S. and the dollar, as in previous years during this period stronger, we can justify the decline that has occurred. If the price breaks or falls below the $ 5.31 can be expected to decrease and the implementation of head & shoulders pattern. In this case we expect the price level of $ 28.05.
In the event that the price again reject the 50% fibo level (31.820) and the upward trend continues expect the formation of wave 3, which will finish higher than 40 $ in the future.
In the short term we expect in any case if there is a slight decrease in the formation of harmonic patterns as shown:
But in both cases does not necessarily mean that there will be breaking the baseline. In any case it will be interesting to chart silver in the coming days and we will have a clear indication of where prices will go, based on which we will decide on further action.