Silver might be preparing to push through $28.00 levels before turning lower again. The metal has remained in control of bears since $30.00 levels early August 2020. It had dropped sharply towards $23.44 levels after that before drifting sideways. Bears might be looking to resume soon.
Silver larger degree potential wave structure is as follows: The metal had dropped to sub $13.00 levels in December 2015. Since then, it has carved a potential expanded flat structure which might have completed around $30.00 mark.
An expanded flat is a 3-3-5 structure, but unlike standard flat, prices go beyond the extremes. In this case, Silver had dropped through $11.67 lows in March 2020 below the extreme $13.00 levels. Also note that the last Wave C has unfolded into 5 waves towards $30.00 levels.
If the above proposed wave counts hold well, Silver might be up for another 5 wave drop towards $11.67 levels over the next several weeks. The metal needs to break below $23.44 interim support to confirm a meaningful top is in place at $30.00 mark.
Looking at the lower degree wave counts, the drop between $30.00 and $23.44 could be marked as Wave 1, as seen on the chart here. The subsequent rally towards $28.86 could be seen as potential Wave 2 termination. It is quite possible that Wave 3 might have resumed lower.
Traders might be willing to initiate fresh short positions around $28.00 levels with a potential stop above $30.00 mark and projected targets below $19.00 levels respectively.
Technical Analysis Team
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