SILVER Elliott Wave
Since our last analyses Silver was trading downwards, just like we expected, impulsive wave 3 (coloured blue) of the bigger wave (3) (coloured green) was developing. Yesterday, during the Asian session we could observe descending movement from 29.17 towards the 28.80 level and we can consider this move as the end of the sub-wave 1 (coloured blue) of (3) wave (coloured green). Therefore, during the European and New York sessions this commodity has continued trading in a bearish mood and the price reached 28.40 level. We can consider this movement as the end of the 3 wave (coloured blue). At the moment price is trading around 28.30 level and we expect to see bullish movement in the next few sessions until the corrective wave (4) ends. In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the waves 3 we can define the potential targets with measuring wave 3 with take profit at 28.56 (38.2% of wave 3). To reduce the risk, we can use support at 28.00 level as stop loss.
Support and Resistance
(S3) 27.420 (S2) 27.910 (S1) 28.210 (PP) 28.700 (R1) 29.000 (R2) 29.490 (R3) 29.790
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 28.80 with stop loss 29.44 and take profit at 28.20 are recommended.