Is Silver about to embark on a impulsive rally that will likely take it beyond it’s July high of $21.23?

Gabe – the following wave count is offered for your consideration, along with other EWP practitioners.    I appreciate your charts and highly respect your work.  I’ve seen other similar wave counts as yours posted here, and expect you can correct me if I am way off.

My count differs from yours, wherein you propose that primary wave 1 (P1) has been completed, and now Silver is presently in the process of searching for a bottom to complete primary wave 2 (P2).

I’m contending that P1 has yet to be completed, and instead Silver is presently completing a 4th sub-wave within a larger scale 5-wave pattern, and is therefore about to breakout higher on it’s way to eventually completing P1.

For neophytes reading in, it’s important to understand that EWP provides “rules” for wave counting which cannot be broken, and “guidelines” that offer tendencies with exceptions.  The rules for a wave 2 and wave 4 correction are quite different, and therefore will have important impact on future price projections.

For example, wave 2’s typically retrace 50-61.8% of wave 1, but can retrace all of wave 1 (guidelines), as long as it doesn’t move beyond the start of wave 1 (rule).  In the case of Silver, that would potentially mean all the way down to $13.62!

Wave 4’s typically retrace 38.2-50% of preceding wave 3 (guideline) but cannot move beyond the end of wave 1 (rule).

Therefore, it’s important to know if you are in a wave 2 or wave 4, as the potential downside is much greater for wave 2, and more restrictive for wave 4.

With all of that said, here is my case for the following wave count.  Gabe – your wave count is provided in red numerals for comparison purposes.

silver-ewt