The bearish harmonic effect of the three drives pattern has been able to take the metal in a southern trip, breaching the uptrend line that carried the movements from 14.60 to the peak of 19.80. Currently, we see how the secondary descending channel controlled the trend ideally, while the metal stabilized below SMA 50; therefore, more bearishness might be underway during this week but a re-testing action for the broken uptrend might occur first. Carefully note that a break of the pivotal support levels of 17.05 could bring panic sell-off actions.
Recommendation Based on the charts and explanations above our opinion is, selling silver from 17.60 targeting 16.90 and stop loss above 18.05 might be appropriate
Gold
The mixture studies between the suggested Elliott sequence for the rally from 1044.00 to the all-time high of 1249.00, where harmonic methods prove that the collapse from 1249.00 to 1165.00 zones could be seen as wave 'A' while wave 'B' is currently under preparation; thus, wave 'C' could be activated to complete the cycle. Note that the bearish effect of the harmonic three drives is still in favor. To recap, potential downside movements could be seen during this week assessing intraday direction, while the bearish harmonic structure has been completed on Stochastic of the four-hour interval. A break of the historical peak will negate these anticipations.
Recommendation Based on the charts and explanations above our opinion is, selling gold with a breakout below 1215.00 targeting 1165.00 and stop loss above 1250.00 might be appropriate.
