Silver - Expecting for a New Bearish Leg

EagleFX Team EagleFX

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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Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

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