Silver seems to have carved a meaningful top just below $30.00 levels on August 07, 2020. The metal had reversed sharply towards $23.44 levels before pulling back higher. It is seen to be trading around $27.36 levels for now and could be preparing to resume lower.
Silver probable wave counts are as follows: Believe it or not the metal has been in a corrective phase since printing highs around $50.00 mark in 2011, along with Gold. The earlier drop between $50.00 and $13.50 could be labelled as Wave (A) (not seen on the chart here).
Wave (B) has managed to unfold as an expanded flat A-B-C thereafter. An expanded flat is a 3-3-5 wave structure, in which Wave B travels beyond the extreme of Wave A. It is then followed by a sharp reversal, as Wave C unfolds into 5 waves.
In this case, Wave B terminated around $11.67 levels, which was then followed by a sharp Wave C rally towards $29.85 levels. If the above is correct, Silver might have completed larger degree corrective Wave (B) around $29.85 levels respectively.
The metal should resume lower again as Wave (C) progresses below $11.67 levels going further. Also note that Wave (C) would sub-divide into 5 waves. Looking further, Silver might have carved Waves 1 and 2 within Wave (C) lower towards $23.44 and $27.10 respectively.
Traders might be preparing to initiate fresh short positions from current levels around $27.40/50, with protective stops above $30.00 mark and projected targets below $11.67 levels respectively. Only a break above $30.00 mark would change the bearish structure.
Technical Analysis Team
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