Dojitrader asked for my long term view on silver. Which I have presented above. Looking at the monthly chart first it looks like we have seen wave 4 end with the test of 26.12 and have begun the final rally higher in wave 5. That said, we are clearly in the very early stages of wave 5 and is likely near or at a low risk buying opportunity (stop below 26.12). However, to confirm that wave 5 is indeed developing we need a break above 30.75 and more importantly a break above 32.47. A break above the later will confirm the next rally higher towards 49.79 with a ideal target for wave 5 near 54.00.
Looking at the daily chart the rally from 26.12 to 35.39 it clearly has impulsive characters, which is what we would expect if wave 5 is developing and the decline from 35.39 down to 28.28 is clearly corrective also what we would expect. So to sum it all up I do expect support at 26.12 to protect the downside for a break above 30.75 indicating that wave 5 towards a new high above 49.79 is developing. A break below 26.12 will invalidate my count and call for a deeper decline towards 24.22 before the next strong support is met.
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