For silver, September 2011 was one for the record books. It all started on September 22, when the enduring ascent of silver prices came to a screeching halt. In just 5 days that followed, the metal experienced its sharpest dollar-decline in 32 years, all the while erasing 1/3 of its value.
Judging from Google news archives, silver's rout hit much of the financial mainstream like a cartoon anvil on the head. A search for September 21, 2011 -- one day before silver took to the downside in earnest -- produced these hi-ho-silver headlines below:
- "Silver bulls have the overall near-term technical advantage" (Forbes)
- And -- "Silver Price In a Win-Win Situation ahead of a Federal Reserve announcement." (International Business Times)
During the exact same time, EWI's
Metals Specialty Service foresaw the opposite scenario in silver's near-term future. Here, our own "archive" search uncovered these remarkable insights:
"I'll have to remain neutral near-term but overall, I am bearish and looking for a key top to form. Prices have now traded below the 50-day MA for three straight sessions... this could be indicating an important 'character' change which in this case could be bearish."
"Silver has accelerated lower, broke key near-term support I highlighted, and appears to be accelerating lower. Let me be clear. I favor the downside and that a larger third wave decline perhaps eventually to below 32.30 is unfolding."
"We are still in the center point of wave three of the decline so much lower prices are likely overall. As far as downside targets go... 26.67 is a viable target."
Silver's "hell week" saw prices plummet over 35% before stopping at $26.02 on September 26 -- within cents of the 26.67 target.
So, with prices bouncing choppily since, EWI's
Metals Specialty Service now reveals the
two most likely Elliott wave counts underway in silver. Both scenarios imply that silver prices are headed in
one direction.
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Metals Specialty Service Editor Mike Drakulich uses the Wave Principle and 30 years of market experience to help you replace the endless market possibilities with higher-confidence probabilities.
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