Silver Completes Expanded Flat At $26.20

31 July 2020

Silver might be ready to resume lower from here, as the metal might have completed an expanded flat just above the $26.00 mark. The metal has lagged behind its counterpart Gold this year, which has managed to print all-time highs at $1981.

Silver probable wave counts since December 2015 lows are as follows: The metal had drifted sideways after the December 2015 lows at $13.77 levels. It managed to complete Wave A of an A-B-C flat around $19.65 in September 2019.

Wave B had ended up at $11.65 in March 2020, dropping to fresh swing lows after 5 years. This drop had confirmed that Silver is on its way to carve lower lows and lower highs, and most traders were convinced. But that was not in store.

Silver managed to rally sharply towards fresh swing highs around $26.20 levels, to complete a corrective expanded flat wave structure. An expanded flat is a form of corrective wave which is often referred to a traders’ nightmare as it swings to both price extremes.

If the above proposed structure holds well, Silver seems to be resuming lower from here. The metal is expected to print below $11.50 over the next several weeks. Bears might be poised to remain in control from here as a meaningful top is carved around $26.20.

Traders might be inclined to initiate fresh short positions around current levels at $23.65/70, with protective stops above $26.20 and projected targets below $11.65 respectively. Only a break higher would delay matters further.

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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