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.
Technical Analysis Team
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