Already in July I had a post saying we where working on wave iv of 5. See the post herehttp://theelliottwavesufer.blogspot.com/2011/07/silver-working-on-wave-iv-of-5.html
We are still working on that same wave iv, but we can now say more about, which target we are most likely headed for. That target is in the 26.37 to 26,67 area. In this area we see multiple important supports coming in. At 26.67 we have the 50% retracement of the entire rally from 3.51 to 49.51. At 26.60 wave b of iv will be equal in length as wave a of iv and finally at 26.37 will find the 66% retracement of the rally from 14.63 to 49.51.
So the area between 26.37 and 26,67 should be a formidable support area posing the best opportunity for the final wave v higher towards 53.36.
You quote the 66% retracement from 14.63 to 49.51 is is at 26.37. Why 66%??? and not the fibo of 61.8%?? Thanks.
ReplyDeleteHi Alastair
ReplyDeleteThe reason I quoted the 66% this time, was that it fell within the support-zone of the two other retracement-targets.
The 61.8% retracement target is at 27.97 and could do the trick too, as it's just above the major resistance area.
Even Though the 66% retracement isn't a "real" fibo retracement I keep an eye on it as you derive it from the Fib-sequence 2/3.
Hope it makes sense.
Regards
EWS