Silver, in its hourly chart, shows the reaction in a previous congestion zone between levels of $17.804 and $17.930 per ounce. The lower lows sequence observed in earlier sessions, makes us suspect that Silver could develop a new drop. 

According to the Elliott wave perspective, we distinguish a bearish incomplete corrective sequence. The precious metal should start a bearish wave 'c' of Minute degree labeled in black, which could visit fresh lows. 

On the other hand, the strength showed by the US Dollar Index (this week gains 0.21%) provides us an additional argument to think in the short-side.

A sell position will trigger if the price closes below $17.753 per ounce. Our conservative scenario foresees the first target at $17.616; if the precious metal extends its drops, the price could test the level $17.494, and even $17.158 per ounce.

The level that invalidates our bearish outlook is placed at $18.064 per ounce.

Finally, the risk of our bearish perspective comes from the latest CFTC report. In the last release, institutional traders informed that they hold 71.85% of long positions. This positioning level makes us suspect that big participants continue looking more upsides in Silver futures.

Silver

Trading Plan Summary

Entry Level: $17.753.
Protective Stop: $18.064.
1st Profit Target: $17.616.
2nd Profit Target: $17.494.
3rd Profit Target: $17.158.
 


 

Try Secure Leveraged Trading with EagleFX!

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.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD battles with 1.0800, lower lows still likely

Another batch of dismal German data alongside looming risk-off sent EUR/USD to a fresh multi-year low of 1.0784. Recovery unlikely in the current scenario.

EUR/USD News

AUD/USD nears 0.6661, an over one-decade low

Dovish RBA Minutes and coronavirus concerns of economic growth weighed on the Aussie. Westpac Leading Index coming up next.

AUD/USD News

Altcoins push hard not waiting for a Bitcoin reaction

The Altcoin market has only needed one business day to see prices rise sharply again. Bitcoin, still, has adopted the anchor function and for the moment is giving up the battle for the $10000.

Read more

Gold firmer, near $1,600/oz on coronavirus fears

Renewed fears around the Chinese coronavirus (COVID-19) have been supporting the demand for the safe haven metal in past hours, taking the ounce troy to levels just shy of the key $1,600 mark.

Gold News

FXStreet launches Real-Time Trading Signals

FXStreet Signals offers access to explanatory live webinars, real-time notifications when signals are triggered and exclusive membership to the company’s Telegram group, where users get direct guidance by our analysts and get room to discuss and interact.

More info

Forex Majors

Cryptocurrencies

Signatures