Silver - Expecting for a New Bearish Leg
|Silver, in its 2-hour chart, exposes a decline developed on January 08th, when the precious metal reached $18.859 per ounce. Once Silver reached this high, the price completed an upward motive wave 1 of Minor degree labeled in green.
After ending the first motive wave, the precious metal started to decline. The internal structure of the bearish move shows a five-wave sequence. This subdivision suggests that the Elliott corrective formation should be a zigzag pattern (5-3-5) in progress.
If this sequence is correct, Silver should make a wave b of Minor degree labeled in black in three internal segments. Probably, the price reaches the area between $18.177 and $18.327 per ounce, from where the precious metal should continue a second bearish leg.
A short position will activate if the price soars and closes below $18.177. Our conservative scenario foresees a potential first target at $17.840 per ounce.
The potential next targets are $17.557 and $17.290 per ounce. The completion of this wave c in black could bring the pass to a new upward cycle.
The invalidation level of this scenario locates at $18.643 per ounce.
Trading Plan Summary
Entry Level: $18.177.
Protective Stop: $18.643.
1st Profit Target: $17.840.
2nd Profit Target: $17.557.
3rd Profit Target: $17.290.
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