Last week’s analysis for Silver was extremely bearish. Price has consolidated sideways.
Downwards movement was expected. Although Silver has not made a new low below the prior low three weeks ago, it did move lower for the week.
Last analysis noted Silver had broken below support about 15.65, which had been held for just over a year, and that a small bounce up to resistance at prior support was expected for the week. A small range inside week exactly fits this expectation.
Last analysis noted that Silver had strong support about 15.65. A downwards breakout below long held support was expected as more likely than upwards. Price closed at 15.485 this week, giving a classic downwards breakout.
Last week’s analysis expected a small bounce, which did not happen.
Volume, RSI and Stochastics are used this week to determine the strength or weakness of this new low.
A little more downwards movement was expected from last week’s classic technical analysis.
At least four Elliott wave counts remain valid, so classic technical analysis is vital to indicate which one is most likely.
The main Elliott wave count expected downwards movement to continue for Silver, which is what has happened.
More downwards movement was expected for last week, which is exactly what happened for Silver. The weekly candlestick closed red, with a lower low and a lower high.
Another upwards week fits the main Elliott wave count.
Price moved very strongly lower on Friday but remains above the Elliott wave invalidation point.
A strong upwards week fits the larger expectations for the preferred Elliott wave count.
An inside week does not change the overall analysis.
For the short term, On Balance Volume suggests what may happen early this week.
Last week’s analysis expected an upwards trend to develop. A slightly higher high and a higher low completes a green weekly candlestick, which fits expectations.
Silver remains range bound. All Elliott wave counts remain valid.