FX.co ★ Silver Wave analysis for January 11, 2013

Silver Elliott Wave

Since our last analysis silver has traded upwards corrective (C) wave (coloured green) of the bigger (4) wave (coloured red) has developed. Yesterday during the Asian and European sessions we could observe ascending movement from 30.23 toward the 30.62 level. Therefore, during the New York session this commodity continued trading in a bullish mood and price reached a new daily high at 30.92 level. We can consider this move as the end of the corrective (4) wave (coloured red). At the moment silver is trading below 30.70 level and we expect to see the price lower today. In accordance with our wave rules and taking into account that the wave E should retrace 61.8% of the wave C, we can define the potential targets with measuring wave C with take profit at 28.35 (61.8% of wave C). To reduce the risk, we can use resistance at 31.48 level as stop loss.

Support and Resistance
(S3) 29.728 (S2) 29.992 (S1) 30.423 (PP) 30.687 (R1) 31.118 (R2) 31.382 (R3) 31.813

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 30.60 with stop loss 31.48 and take profit at 28.35 are recommended.