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.
Technical Analysis Team
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.