This week the Silver reached the highest level of the last 12 months. Today, the precious metal hit the $16.467, which is in the exhaustion zone of an internal cycle.
The second equal leg incomplete
The Silver structure shows an incomplete bullish sequence. The long-term formation should complete a second equal leg at 16.609 level. This zone converges with the exhaustion zone of the internal cycle started last May 28, which is between $16.358 and $16.6. The XAGUSD 4-hour chart shows an extended fifth wave of the internal sequence. The climatic upward move could reverse soon.
The completion of the long-term structure, calls for a correction of the same degree. The corrective sequence should have three waves. The primary bias keeps bullish, but our position is neutral until the price doesn’t complete the bullish structure.