Silver:
Analysis:
We are now rallying in wave iii, and within wave iii, all of wave -i- of (i) ended at the 24.39 high and wave -ii- at the 19.94 low. We are now rallying in wave -iii-, which has an initial projected endpoint of:
-iii- = 1.618-i- = 30.26.
Our powerful wave $i$ of -iii- rally ended at the 26.23 high and we are now falling in wave $ii$, which has the following retracement levels:
50% = 23.09;
61.8% = 22.34.
We have now entered our retracement zone so we need to be on guard for the completion of wave $ii$, perhaps at the 22.84 low, and the start of another sharp rally in wave $iii$!
Next major resistance is the 24.19 level.
Trading Recommendation: Go long, with puts as stops.
Active Positions: Long, with puts as stops!
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