Silver (XAGUSD) Commodity Elliott Wave Technical Analysis
Silver’s recent rally to a new high has now encountered a pullback, primarily due to the strength of a bullish dollar. Despite this correction, it’s anticipated that the pullback will conclude above the 07-August low, allowing buyers to push prices higher again.
Silver (XAGUSD) Commodity Daily Chart Analysis
We have labeled the upward movement from January 2024 to May 2024, which peaked at $32.5, as wave ((A)). This move represents a bullish impulse wave. Afterward, Silver corrected through a double zigzag pattern that lasted for 11 weeks. Now, a resurgence has begun. The overall structure from January 2024 can either represent a 1-2-3 wave sequence (impulse) or an A-B-C sequence (zigzag).
- Impulsive Scenario: If the current move develops as an impulse, the target for the 3rd leg of the sequence is projected above $41.5.
- Zigzag Scenario: If the movement follows a zigzag, the target for the upside ranges between $37.38 and $41.49.
In both cases, the overall trend remains bullish. Starting from the low of $26.46 in August, we see the development of the 3rd wave. The price action suggests that Silver is now in wave 2 of (3) within the larger ((C)) or ((3)) wave.
Silver (XAGUSD) Commodity H4 Chart Analysis
On the 4-hour chart, wave 2 appears to be forming an expanding flat structure. However, flat patterns can often be tricky, so a breakout above wave ((b)) is necessary to confirm the onset of wave 3. Alternatively, wave 2 could still develop into a zigzag pattern. As long as the low of September 2024 holds, the outlook remains bullish, favoring the development of wave 3 of (3).
Technical Analyst: Sanmi Adeagbo
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