Silver - Correction forming Parallel Channel - Target
Silver looks to be forming a descending parallel channel as price corrects from recent highs.
I'm not going to pretend I'm an Elliot Wave expert, but the move up was a bullish impulse wave. The ABC correction is forming a parallel channel, which we can use for a possible entry if price breaks lower. The target also aligns closely to the 50% fib level, which I have found to be a fairly common retest level before trend continuation with Silver. 0.5 Fib also comes in just below $17, strong psychological number.
End of the C would be the third touch of channel support and should coincide with the beginning f the next impulse wave up.
The blue dashed trend-line which price is currently testing is from swing lows on the weekly chart (higher time-frame trend-line are usually well respected). It may offer a little bounce, but it doesn't look like sellers are done yet.
Strong USD is keeping downward pressure on the metals. It's currently consolidating near YTD highs and isn't attracting a lot of selling.
I'm not going to pretend I'm an Elliot Wave expert, but the move up was a bullish impulse wave. The ABC correction is forming a parallel channel, which we can use for a possible entry if price breaks lower. The target also aligns closely to the 50% fib level, which I have found to be a fairly common retest level before trend continuation with Silver. 0.5 Fib also comes in just below $17, strong psychological number.
End of the C would be the third touch of channel support and should coincide with the beginning f the next impulse wave up.
The blue dashed trend-line which price is currently testing is from swing lows on the weekly chart (higher time-frame trend-line are usually well respected). It may offer a little bounce, but it doesn't look like sellers are done yet.
Strong USD is keeping downward pressure on the metals. It's currently consolidating near YTD highs and isn't attracting a lot of selling.
