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.
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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