Silver Potential Top Carved Below $30.00 Mark

21 August 2020

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.

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