Silver Could Follow the Bearish Way of Gold
|Silver prices moved mostly upward in the intraday session; however, Gold fell, likely looking for a new monthly low. In this post, we'll review our arguments for anticipating further declines in Silver.
1. Silver and Gold are positively correlated, and there exists a possibility that Silver would follow the same bearish direction of Gold.
2. Similarly to Gold, Silver runs in an incomplete bearish wave C. Thus, it's likely a bearish continuation.
3. A short position will trigger if the Silver price drops and closes under $17.00 per ounce with a conservative target at $16.78. If price action extends its declines, Silver could plunge to $16.61 and $16.29.
4. Our bearish scenario will be invalid if the price moves up and closes above $17.20 or if Silver pierces but doesn't close below $17 per ounce.
Trading Plan Summary
Entry Level: $17.00.
Protective Stop: $17.20.
1st Profit Target: $16.78.
2nd Profit Target: $16.61.
3rd Profit Target: $16.29.
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