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AUG (Gold/Silver Ratio) Showing A Five Waves From 03.18.2020

September 29, 2020 By EWF Eric

AUG( Gold/Silver Ratio), Showing A Five Waves From 03.18.2020.

The Ratio between Gold/Silver ( AUG) is a very good indicator of where the market is heading and especially the $USDX trade. The Ratio reached the extreme blue box area early this year when it trades into the 126.23 peaks. We at Elliottwave-forecast always relate the Market and understand how each instrument affects the other. When the Ratio reached the blue box area because we knew that the market was closed for a turn against the $USDX. And it will then affect the value of Silver in a quite simple equation i.e higher Silver means lower $USDX. Similarly lower Silver means higher $USDX. We will explain the forecast below.

Gold To Silver Ratio ( AUG) Monthly Chart

The following chart represented the advance in the Ratio since the old-time lows, and show how the Blue Box area was reached. Meaning a change in dynamics and how we see the relationship between Gold and Silver. The Ratio trading higher means that Gold holds the value more than Silver. But most important means the $USDX is supported. We understand many will not be able to see the relationship between Gold trading higher and $USDX trading either sideways to higher or sideways to lower. The Ratio is like commodities crosses it is a balance between three instruments and always one needs to be sideways.

In this case, Gold, Silver, and USDX, we believe Gold will lag Silver into the news cycle and the $USDX will be the one losing ground. While Gold was leading Silver since 2016. It has been trading higher while Silver trade sideways and even took 2016 low. While $USDX makes a new high in the same period. The blue box reaching means the dynamics change and consequently knowing that will allow traders to get the best out of the Market. Early this year, we presented an article that explains exactly what the Market has been doing.

The article explains that Silver was about to turn higher and the $USDX will turn lower. As right now, we know the Ratio reached the Blue Box and turned lower. We already saw $XAGUSD (Silver) rally and $XAUUSD(Gold) taking the 2011 peak, which was expected. Now, something else has happened, the Ratio is showing a clear five waves decline off the peak at the Blue Box. The idea is explained in the following chart:

Gold To Silver Ratio ( AUG) Daily Chart

The Idea presents the path into three waves bounce and then should see more downside. It will present a unique opportunity for those that understand how the Market works. As we always said, the Market is a series of three instruments, and the five waves lower in the ratio are telling us who will be the winner and who will be losing. The Five waves are telling us where to place our investment and why the $USDX will be the one losing. But also will be telling us that Silver will rally a lot and will be a long term opportunity.

Gold To Silver Ratio Video

Silver Miners ETF (SIL): Getting Ready For A Wave III

September 28, 2020 By EWF Eric

Wave 3 is the most powerful wave in an Elliott Wave Structure. In this article, we will be looking at an opportunity to catch wave 3 in Silver Miners ETF and also look at Silver and Gold charts to further support the view. The Global X Silver Miners ETF (SIL) provides investors access to a broad range of silver mining companies. The Global X Silver Miners ETF (SIL) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Silver Miners Total Return Index. Let’s take a look at the Monthly chart of Silver Miners ETFs.

SIL Silver Miners ETF Monthly Elliott Wave Analysis

Chart below shows SIL Silver Miners ETF completed wave ((a)) at 94.03 back in 2011. It is worth noting that this is when Gold and Silver also saw a peak back in 2011. This was followed by a 3 waves pull back to 14.94 in 2016. Then SIL ETF rallied as an impulse to 54.34 ending in August 2016, following this it saw a 3 waves pull back to 16.00 in March 2020 before it started rallying again. It rallied to 52.87 ending in August 2020, now the cycle from March 2020 low is over and SIL ETF is in a pull back right now. There are 3 types of extensions in an impulse structure, extension can either take place in wave 1, wave 3 or wave 5. When the extension takes place (image shown below) in wave 3, the chart looks like what Silver Miners SIL ETF chart looks at the moment.

5 Waves Elliott Wave Impulse

3 Types of Extensions in an Impulse Wave

XAGUSD (Silver) Long-term Cycles

It is worth noting that peak in Silver was the same as in Silver Miners ETF (SIL) and wave ( II) low in SIL was the secondary low in Silver in March 2020. It is evident that Silver will not trade below zero line as no one would pay you to get Silver from there which supports the view that correction of the Grand Super cycle in Silver ended in March 2020. Moreover, Gold has already broken above 2011 peak and has an incomplete bullish sequence suggesting Silver will also be looking for a break of 2011 peak and if that happens, Silver Miners ETF should follow so the current pull back is a good opportunity for buyers to look for an entry to catch a possible wave III.

Silver Miners (SIL) ETF: Getting Ready for a wave III of (III)

Elliott Wave View: Support Area for Silver

September 23, 2020 By EWF Hardianto

Elliott Wave View of Silver (XAG) suggests the cycle from September 1 high has ended as wave (1) at 25.82 low. From there, the metal bounce higher in wave (2). The correction unfolded as zigzag Elliott Wave Structure. Up from wave (1) low, wave A ended at 27.48 high. The dip in wave B ended at 26.54 low. Afterwards, the metal resumed higher and ended wave C at 27.60 high. This ended wave (2) in the higher degree. Since then, the commodity has resumed the decline lower.

Down from wave (2) high, wave 1 ended at 26.26 low. The subdivision of wave 1 unfolded as 5 waves impulse structure. Wave ((i)) ended at 26.98 low and wave ((ii)) bounce ended at 27.43 high. Wave ((iii)) lower ended at 26.69 low and wave ((iv)) bounce ended at 26.94 high. The push lower in wave ((v)) ended at 26.26 low. The metal then bounced higher in wave 2, which ended at 27.22 high. Afterwards, the metal resumed lower in wave 3, which ended at 23.67 low. The bounce in wave 4 ended at 25.24 high. Currently, wave 5 is in progress. As long as 27.60 stays intact, expect the bounces in 3,7 or 11 swings to fail for more downside. The 100 – 161.8% extension from August 7 high is at 18.36 – 22.39 area. If reached, that area can see support for 3 waves bounce at least.