Silver Bottom Completed
New York (Mar 31) It appears the Silver markets have fulfilled the secondary corrective pattern objectives with the low of 19.58 established on Thursday March 27. The secondary cyclical bottom came in as expected during the 28/31 March time frame. Once this bottom unfolds, the next wave up in silver should takes us into the 26 to 27 region over the next 3 months. This pattern projects an intermediate uptrend into the late May early June time frame.
In this report I also said, “This cyclical low was anticipated and published here. According to the cyclical pattern confirmed at the end of last year, the market is in the process of building the secondary bottom for the next move up that should take it into the end of May to the July 15 time frame.”
In my last report regarding silver I said:
“Cover short on corrections at the 19.73 to 19.18 levels and go long on a weekly reversal stop. If long, use the 19.18 level as a Stop Close Only and Good Till Cancelled order. Look to take some profits on longs, as we reach the 21.25 and 22.02 levels during the week.”
The silver market made a low of 19.58 last week as it fulfilled and completed this second corrective wave pattern triggering the initial Buy signal at 19.73 mentioned above. With the market closing above this first level of support, it increases the probabilities greatly that the intermediate bottom is in place. Use last week's low as a protective weekly stop. If stopped out, re-enter the longs on a test of 19.18. This is a low probability count in my opinion but a historic buy if tested. The initial profit objective is the 20 levels. A close above 20 would trigger additional short covering and new buyers as we move into the 21.25 to 22.02 area and weekly swing resistance levels.