On occasions in the past I have mentioned the idea of using Daily and Weekly Elliott Wave counts that are in sync as a tool to identify trading opportunities.
Most recently, silver (using the ETF ticker SLV) came up as a bearish candidate back in ??. Following a plunge and then a rally, SLV has resumed its downtrend, breaking down to new lows in the process.
Figure 1 displays the daily and weekly Elliott Wave counts. A trader paying attention to these two counts acting in concert might have considered using the recent rally in SLV as an opportunity to sell short or to establish a bearish options position using options on SLV.
Figure 1 – Daily and Weekly Elliott Wave counts for SLV remain bearish (Courtesy: ProfitSource by HUBB)
The purpose of this article is not necessarily to trigger you to take some sort of action in SLV. It may be getting a little late to start getting bearish on SLV (although a break to new lows is obviously not bullish). The point of this is not to tell you what to do or not to do in silver.
The point is simply to highlight the potential usefulness of dueling bullish (or bearish) Elliott Wave counts in identifying trading opportunities. As far as SLV is concerned, its “Mission Accomplished”.