Brent Harris Elliott Wave
Futures Market Advisory Service

Quarterly Report Sample Page

Silver (Oct. 10, 2005)

Since the decline into the August 2005 low in silver (6.63) did indeed come very close to our MINIMUM OBJECTIVE, at 6.59-6.49, AND a crystal clear, (5)-wave advance immediately followed, it certainly looks like the wave-B decline from the 2004 peak has ended. In which case, the MOST BULLISH wave-position since March 2003 is now at hand. In essence, because we are now in the FINAL, C-wave section of a 13-year old BULL CYCLE, it is highly likely that we’ll AT LEAST see a “good-trending”, 5-wave advance to new highs (+8.50). The MINIMUM OBJECTIVE for which, should be at the 8.98-9.175 resistance area. This powerful resistance level incorporates the 14.58%-retracement projection from the 1980 all-time-high, appreciations of 161.8%-and-123.6%-from the 1993 and 2001 lows, AND an advance from the 2001/x-wave low that is EQUAL in size to that of the initial, 1993-1998 advance. Traders should be aware, however, that because we are in the FINAL PHASE of such a long-term Bull cycle, it is possible that we’ll see a MUCH LARGER BLOW-OFF. If I am EITHER unable to decipher a completed, 5-wave rally (when 8.98-9.175 is hit), OR a close ABOVE 9.18 occurs, then “look-out”. In this event, a FINAL ACCELERATION to EITHER the 19.1%-retracement projection from the 1980 high should occur, OR possibly a move to the 23.6%-retracement area. This yields “blow-off” objectives of 10.75-10.76 and/or 12.27-12.47. By the same token, however, traders should also keep in mind that once it is possible to label a completed advance from the August 2005 low, the most prolific selling opportunity since AT LEAST 1987 should be at hand. At this juncture, the long-range pattern will indicate the emergence of a BEAR CYCLE, which will be of the SAME MAGNITUDE as the 1980-1993 Bear market. Pivotal support for the December silver is now at 7.55-7.44.

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