Silver Might Have Topped Around $29.85 Levels

14 August 2020

Silver might have carved a meaningful top just below $30.00 levels on August 07, 2020. The metal has dropped through $26.30 levels thereafter, before pulling back higher again. It is trading close to $27.30 mark for now and should be ready to decline further.

Silver probable wave counts are as follows: The metal had earlier dropped from sub $50.00 through $13.00 levels around December 2015, as an impulse drop, unfolding into 5 waves (not seen on the view here).

Ideally, an impulse drop is followed by a corrective rally, as discussed earlier. The wave structure since December 2015 through August 2020 is that of a larger degree corrective wave. It has unfolded as an expanded flat A-B-C.

Also note that an expanded flat travels beyond the price extreme, which is $13.00 in this case. Wave B of the expanded flat had reached lower towards sub $11.50 levels before rallying to complete Wave C around $29.85 levels early August.

If the above structure holds well, Silver should be heading lower from here, breaking below the immediate support trend line and also below the $11.60 mark going forward. The metal would then complete the corrective wave at a larger degree.

Traders might be preparing to initiate fresh short positions around $27.30/28.00 levels, with protective stop above $30.00 and projected target below $11.50 mark 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.

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