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.
Risk Warning: CFD and Spot Forex trading both come with a high degree of risk. You must be prepared to sustain a total loss of any funds deposited with us, as well as any additional losses, charges, or other costs we incur in recovering any payment from you. Given the possibility of losing more than your entire investment, speculation in certain investments should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution’s financial well-being. Before deciding to trade the products offered by us, you should carefully consider your objectives, financial situation, needs and level of experience. You should also be aware of all the risks associated with trading on margin.
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