Silver Remains Bearish Below $30.00 Levels

11 September 2020

Silver might have carved a meaningful top around $30.00 handle, early last month. The metal had reversed sharply lower towards $23.50 lows immediately thereafter. Since then, it has been drifting sideways within a potential triangle structure.

Silver probable wave counts are as follows: At a larger degree, the metal has completed an expanded flat A-B-C around $30.00 mark. An expanded flat is a complex corrective wave that prints beyond the extremes, in this case below $13.60 lows.

The rally between $11.60 and $30.00 was potential Wave C within the expanded flat structure. Wave C typically unfolds into 5 waves, making an impulse and creating an illusion of a new trend. If the above holds true, Silver should remain below $30.00 and turn lower towards $11.60 levels again.

Looking into the lower degree wave structure, Silver might have carved lower degree Wave 1 after having dropped from $30.00 levels through $$23.44 earlier. The metal might be carving a potential triangle Wave 2 since then, and might have terminated around $27.53 yesterday.

If the above is correct, Silver should reverse sharply breaking below intermediary support seen through $26.00 levels. This would accelerate lower towards $23.44 and further. Over the next several weeks, the metal is expected to drop through $19.50 and $11.60 levels respectively.

Traders might be inclined to hold short positions taken earlier, with protective stops above $30.00 levels and projected targets below $11.60 respectively. Only a break above $30.00 would change the above 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.

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