Silver: Waiting for a New Bearish Leg

EagleFX Team EagleFX

Silver, in its 4-hour chart, exposes an upward sequence, which belongs to a wave b of Minute degree labeled in black. The long-term structure unveils an Elliott wave pattern as a flat pattern in progress, which holds a 3-3-5 internal sequence.

The current three-wave sequence began on January 28th, 2020, when the precious metal found buyers at $17.339 per ounce. Likely, once Silver reaches the area between $18.436 and $18.546 per ounce, the precious metal will find sellers.

The conclusion of the wave b of Minute degree could lead Silver to complete its second leg of a three-wave sequence. In consequence, the next path should follow a five-wave sequence.

A sell position will activate if Silver reverses and close below $18.436 per ounce. In our conservative scenario, we expect a decline at least until $18.063 per ounce. The bearish continuation could drive the precious metal until $17.788, and even to plummet till $17.450 per ounce.

Our bearish scenario will be invalid if Silver continues advancing and closes above $18.711 per ounce.

Trading Plan Summary

Entry Level: $18.436.

Protective Stop: $18.711.

1st Profit Target: $18.063.

2nd Profit Target: $17.788.

3rd Profit Target: $17.450.

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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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