How to turn a simple chart into a near-term road map
By Elliott Wave International
On February 20, Variety Magazine's "Film News Roundup" announced a new thriller coming to theaters near you: "The Silver Bear."
Funny enough, that same day, another kind of thriller was playing out in the theater of finance; its name, the Silver Bull!
The chart below captures the action: Since the start of 2019, silver
prices had been on a tear, soaring to $14, $14.50, $15, $15.50 and then
$16 per ounce in late February in a white-hot winning streak that has
outperformed even gold.
Thanks to a wide array of supportive fundamentals including a
softening U.S. dollar, a dovish Federal Reserve, increased economic
uncertainty and a subsequent rise in demand for traditional "safe
havens" such as gold and silver -- mainstream news outlets captured the
Silver Bull sentiment on high:
"Is Silver About to Explode?" (Feb. 21 Seeking Alpha)
"Silver Market Steadily Building Up Momentum" (Feb. 19 Commodity Trade Mantra)
"Silver Experiences A Bullish Development that Points to Higher Prices" (Feb. 20 ETF Daily News)
Yet, off the mainstream screen, we had a very different take on silver's rally. On February 21, our
Metals Pro Service
identified a classic Elliot wave "impulse" underway from the November
2018 low to the February 20 high above $16 per ounce. And, it was close
to being finished.
For newbies, here is an idealized diagram of an impulse wave, defined
as a five-wave move labeled 1 through 5 that adheres to three cardinal
rules:
