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.

Silver

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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