Silver lost more than 25 points yesterday leading to a bearish breakout. How far will price go downside? The following 27 July Silver Elliott wave analysis has clues.
The commodity was set to continue the bearish trend it started mid-June. The bearish trend is properly making up an impulse wave. In the last update, we identified the rally from 19th June as the 4th wave of the impulse wave bearish drive. We also identified a specific corrective pattern to show price had a big chance of continue downside. The chart below was used in the last update.
The chart above shows the construction of a double zigzag corrective pattern from 15.17. Price could advance further up to 15.65 before finally dropping to resume the bearish trend. The trend is still bearish until price shows otherwise. A break above 15.75 will invalidate this forecast and tell a different story.
27 July Silver Elliott wave analysis: what next?
Just as expected, price rallied further to 15.66 to complete the double zigzag wave (iv) and started dropping. With the breakout below the zigzag channel, we would expect Silver to plunge further and lose a further 50 points at $15. The invalidation price for this forecast is above 15.668. Stay tuned for the next update.
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