Well it’s 11:04 GMT London time on 2011-02-25 Friday. It’s been an interesting week of contradictory silver and gold action. They made a high Monday night and silver took a $2 fall. Tuesday, silver made an almost perfect bullish pennant pattern and there was no breakout. The price line just ran out of the apex of the pennant after hugging the upper line looking ready to break out. Gold meanwhile was on the lower line of its pennant. Both climbed on Wednesday but silver without any conviction. Gold went to a higher high, silver drifted about.
The silver pennant seemed to have been morphing into a possible ABC correction with the C-leg to come but gold was still making higher highs.
Gold was stronger than silver, maybe on Libya news and the crude oil spike to over $100 in the WTIC contract.
Then Thursday night/Friday morning came the C-wave down, a magnificent clearout perhaps.
After this, silver is now slightly stronger than gold. My suspicion is that we might get the completion of a C-wave down in gold to one lower low and a higher low in silver to confirm the C-wave bottom. I am going to see if I am correct. In 2 hours time it ay be clear.
All kinds of Elliott Wave patterns were possible during this correction of 3 day duration and it was impossible to call but perhaps it has been resolved now…
However, maybe not! Taking another look at 11:22 GMT I wonder if gold has actually had its ABC correction in the move last night from the highs of yesterday morning. If so, then gold and silver are already in phase. I rather fancy a good move up but could be completely wrong.
It will be fascinating to see what happens when the COMEX opens.
Wow, as a novice trader I can see how much you need to study the markets to succeed. Maybe I should go back to coin collecting!
Footnote, Friday night. Silver has had a slow and choppy upmove, a snall one, with the classic Jim Sinclair "Swiss Stairs" formaiton late on Friday. Could this be the start of a new rally. Wait and see...
I thoroughly recommend listening to Ross Clark's technical analysis of gold and silver on www.howestreet.com here:
http://talkdigitalnetwork.com/2011/02/metals-tracking-historical/#comment-64
with his charts too:
http://talkdigitalnetwork.com/files/2011/02/HoweStreet-Gold-Silver-022111_rossclark.pdf
and also his other interviews and charts this year, all lined from:
http://talkdigitalnetwork.com/author/rossclark/
Listening to all three over this weekend might prepare you for next week, if he is correct in his analysis.
Absolutely excellent! Ross is technical analyst to Bob Hoye who also gives fascinating insights every week in his interviews on the same website.
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