Building on the work of my V2, which had correctly identified the 8 year cycle for Silver, there was something about the MACD bugging me about it and how it didn't line up.
Went back to it and got to the bottom of it!
And what a lovely find regarding the Elliot Wave corrective wave, in that the time proportion between the last correction period and this recent...
We have an order block below the previous support on Silver (XAGUSD)
The support marked has been hunted with a wick once, let’s see if we can get a second manipulation followed by a bounce to the upside.
Price reached the major resistance area.
We can see three drive patern in 4H.
Price retraced 78.6% of the bearish move made last weeks and did not hold the price above this arae.
Also there is bearish engulfing in 4H.
Although price does look like it is breaking the bearish flag formation it has created, I would be extremely wary of a strong approaching supportive level coming up, price could very easily reverse from this point. What I will be waiting to see is a clear break of the supportive level marked followed by a re-test and rejection before entering a sell position.
Fantastic Buy Zone I have marked out here for potential longs into the 30 region. If price manages to break below the key level marked then we will consider a direction change but for the moment I still have a bullish bias.
Silver has hit it's resistance line of 16.84
and after the non farm payrolls, it has fallen.
RSI and MACD are both in a down-trend,
and price is also below its 200 EMA.
In my opinion, that's a few good reasons to go short.
Downtrend since July with huge drop in October price is choppy at the moment, maybe nice time to short with the current pullbacks forming on daily and 4hr charts. Maybe price will touch 17.700 then drop again? on the watch list for sure.