Silver Continues To Remain Bearish Below $30.00

28 August 2020

Silver might be consolidating within a contracting triangle, before giving in to bears again. The metal had earlier hit $30.00 mark before reversing lower. Bears might be looking to be back in control from here soon and a break below $23.40 would accelerate the drop further.

Silver probable wave counts are as follows: The metal might have just completed an expanded flat structure at a larger degree. The structure has taken multiple years to complete since the metal hit $13.50/60 lows in 2011. The expanded flat structure unfolded as a 3-3-5 and might have terminated just below $30.00 mark recently.

If the above larger degree counts hold well, Silver might be on its way to produce 5 waves lower from here, which could drag prices below $11.64 lows in March 2020. It might be too early to predict such a move at this time, but a drop below $23.40 would certainly confirm the same.

Looking further at the wave structure from $30.00 mark, Silver might have completed lower degree Wave 1 around $23.44 and potential Wave 2 around $28.46. If the above counts are correct, a potential Wave 3 should resume lower soon from here.

Alternately, Wave 2 might still be unfolding as a triangle and consolidate further before terminating. Either way, Silver might be preparing to resume Wave 3 lower until prices stay below $30.00 mark, going forward.

Traders might be preparing to initiate fresh short positions as close to $28.00 mark as possible. The protective stop might be placed above $30.00 mark while projected targets clearly point towards $20.00 and lower levels.

Prepared by
Technical Analysis Team

Disclaimer: This information has been produced by a third party, for general information purposes only, and is not indicative of future results. Abans Global takes no responsibility for its accuracy or completeness. Any opinions expressed do not reflect those of Abans Global. This information does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should seek independent advice before making investment decisions. Reproduction of this information, in whole or in part, is not permitted. Please note: If you are a Professional client, you are not eligible for negative balance protection and you could lose more than your initial deposit.

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