Investors have previously turned to silver exchange traded funds as an asset with a safe store of value and as a metal with wide industrial application in a growing economy. However, the precious metal is now suffering from a bad turn on both fronts.
“The Silver ETF price has traced a declining, converging pattern since early 2014 which counts well as an Elliott wave ending diagonal – a terminal pattern. Silver prices are also not far from two Fibonacci support areas, with the upper one near 12.74-12.90, and the lower one around 12.17. Since a diagonal pattern should have five moves, each composed of three smaller waves, we expect the fifth and final move on SLV to reach to the vicinity of the lower trend line and/or the areas near the Fibonacci supports,” adds See It Market.
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