Silver Is Bearish Below $30.00 Handle

18 September 2020

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.

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.

Trade with
Abans Global

  • Authorised and Regulated by FCA
  • Customer Support 24/5
  • Low Spread & Commission
  • Instant Execution
  • No Dealing Desk
Interested in knowing more about our products

Simply send an e-mail to us at: support@abansglobal.co.uk
Contact us on +44(0) 203 936 9000

We will be happy to address all your queries

Our Products

Offering state of the art execution services through multiple top-tier liquidity providers. Abans Global provides you with a tailor-made solution to match the demanding requirements of your business, with the multi-assets offering, advanced trading platforms and FIX API connectivity that provides ultra-low latency.

Forex

Forex

Know More

View more
Cfd’s

Cfd’s

Know More

View more
Equities

Equities

Know More

View more
Indices

Indices

Know More

View more
Commodities

Commodities

Know More

View more

Create Demo Account

Try Demo

Create Live Account

Sign In