Submitted by Joe Russo:
The prospect for the birth of a new Bull-Run in Silver speaks to a broader cyclical theme that relates to a dying dollar bull, and a corollary cyclical sentiment shift back toward a strong market preference for tangible vs. paper assets.
From its current cyclical low in December of 2015, Silver Bullion has risen 30%.
In the broadest of terms, the above referenced theme would suggest the early adoption of a general pair’s trade that was short the dollar and long commodities.
At present, from an Elliott Wave perspective, the 30% rally in Silver is somewhat tentative in terms of whether or not its wave structure is exhibiting impulsive (bullish) or corrective (bearish) patterns.
From its cyclical low at $13.63, the 1st wave move up to $15.99 appears impulsive. The sideways expanded flat/running correction to the noted wave-2 low at $14.78 was clearly corrective in nature, which led to a rather impressive run to the current print high just under $18.00.
The latest move up is clearly impulsive however; price needs to run higher in amplitude toward the $18.60 level or better yet, toward the rising blue upper trend channel boundary in order to satisfy the appearance of a sufficient 3rd wave advance.
Click here for additional observations relative to confirming the birth of a new bull market in Silver Bullion.