FX.co ★ Silver Wave analysis for January 07, 2013

Silver Elliott Wave
Last week Silver was trading downwards, impulsive wave 5 (coloured blue) of the bigger wave (3) (coloured green) was developing. During the Friday's Asian and European session we could observe descending movement from 30.14 towards the 29.21 level and we can consider this movement as the end of the wave (3) (coloured green). Therefore, during the New York session when development of the corrective wave 4 had started, silver retraced back to 30.25 level. Today during the Asian session price reached 30.43 level and we can consider this move as the end of the wave A (coloured blue). We expect the price in a bullish mood again when development of the wave B ends. In accordance with our wave rules and taking into account that the wave C should retrace 100% of the wave A, we can define the potential targets with measuring wave A with take profit at 30.83 (100% of wave A). To reduce the risk, we can use invalidation at 29.21 level as stop loss.

Support and Resistance
(S3) 28.297 (S2) 28.769 (S1) 29.357 (PP) 29.829 (R1) 30.417 (R2) 30.889 (R3) 31.477

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 29.68 with stop loss at 29.21 and take profit at 30.83 are recommended.