Silver/USD Elliott Wave Theory Technical Analysis

Bovespa Index (Brazil) and Silver/USD.

Bovespa Index (Brazil) just hit an important level and minimum target of ours, and is now up against potential resistance. This is a very interesting situation, because the recent developments to a large degree, solidify larger wave patterns in play.

When using Elliott Wave Theory properly (which most practitioners tend to not do), one must be aware of the need to allow ones certainty about the market to vary over time and over the pattern developments – right now however, things are significantly clearer in the Bovespa Index than they’ve been in quite some time.

Silver/USD has corrected over the last trading week or so, after hitting severely overbought conditions last week, according to one of our signaling systems. Silver has now moved into a less certain market phase; there is a larger wave count in play, but in the short term, room for quite a lot of variation.