Silver XAGUSD Commodity Elliott Wave Technical Analysis

Function: Counter-Trend

Mode: Corrective

Structure: Double Zigzag for Wave B (Circled)

Position: Wave C of (Y)

Direction: Wave C of (Y) is Still in Play

Silver Elliott Wave Technical Analysis

The ongoing corrective pullback that started in May 2024 appears to be entering its final phase. Silver prices may soon find support as buyers step in, potentially pushing the metal to a new high for 2024.

Silver XAGUSD Daily Chart Analysis

On the daily chart, the impulse wave sequence that began in January 2024 concluded in May 2024, leading to a corrective pullback labeled as wave B (circled). The earlier impulse wave is labeled as wave A (circled). After the current correction, wave C (circled) is anticipated to emerge as another impulse wave, similar to wave A (circled), with the potential to drive prices above $36. However, the double zigzag structure of wave B (circled) has not yet been completed.

Silver XAGUSD​​​​​​​ 4-Hour Chart Analysis

The H4 chart provides a detailed view of the sub-waves within wave B (circled), highlighting the final stage of the double zigzag pattern. Wave (W) concluded with a zigzag formation on June 13th, 2024, followed by wave (X), which developed into an irregular flat pattern and completed on July 11th. The current wave (Y), initiated on July 11th, is expected to complete the double zigzag structure. Waves A and B of (Y) have already finished, and the price is now in a declining wave C of (Y). Wave C may conclude as either an impulse or an ending diagonal pattern. Silver could decline further towards the $26 level, where it might complete the ending diagonal, find support, and then resume its year-long impulse cycle.

Conclusion

Silver's corrective pullback seems to be nearing its conclusion, with a potential bullish resurgence on the horizon. Traders should monitor for signs of the correction completing around the $26 level, which could present a strong buying opportunity as the next impulse wave begins, potentially driving prices to new highs for 2024.

Technical Analyst: Sanmi Adeagbo

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See Previous: Gold Elliott Wave Analysis

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