Silver: Waiting for a New Bearish Leg
|Silver, in its 4-hour chart, exposes an upward sequence, which belongs to a wave b of Minute degree labeled in black. The long-term structure unveils an Elliott wave pattern as a flat pattern in progress, which holds a 3-3-5 internal sequence.
The current three-wave sequence began on January 28th, 2020, when the precious metal found buyers at $17.339 per ounce. Likely, once Silver reaches the area between $18.436 and $18.546 per ounce, the precious metal will find sellers.
The conclusion of the wave b of Minute degree could lead Silver to complete its second leg of a three-wave sequence. In consequence, the next path should follow a five-wave sequence.
A sell position will activate if Silver reverses and close below $18.436 per ounce. In our conservative scenario, we expect a decline at least until $18.063 per ounce. The bearish continuation could drive the precious metal until $17.788, and even to plummet till $17.450 per ounce.
Our bearish scenario will be invalid if Silver continues advancing and closes above $18.711 per ounce.
Trading Plan Summary
Entry Level: $18.436.
Protective Stop: $18.711.
1st Profit Target: $18.063.
2nd Profit Target: $17.788.
3rd Profit Target: $17.450.
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