Silver Elliott Wave Analysis
Silver continues its upward movement, but the price action remains within a bearish correction phase from October 2024. This pullback is adjusting the upward momentum seen since August 2024, or possibly the entire bullish trend of 2024 if it deepens further. Once this correction concludes, the broader bullish trend is anticipated to resume. However, current price action indicates that the October pullback is not yet complete.
Silver Daily Chart Analysis
On the daily timeframe, Silver remains within a bullish cycle that began in March 2020, when prices were as low as $11.65. From that bottom, Silver has completed at least five swings over 4.5 years, forming what appears to be a large corrective or diagonal pattern. In the short term, the market is retracing the bullish rally. This pullback seems to be forming an incomplete double zigzag pattern, identified as wave (2), assuming it corrects the five-wave rally that began at the August low of $26.453. Wave (2) appears to be unfolding as a complex double zigzag structure.
Silver H4 Chart Analysis
On the H4 chart, the internal structure of wave (2)'s double zigzag correction is more evident. Waves W and X of (2) were completed in November and December 2024, respectively. Wave Y initiated at $32.35 and is expected to form a three-wave decline. The recent bounce from the December 19 low is likely wave ((b)). If wave ((b)) remains below $32.35, the price is anticipated to turn lower for wave ((c)) of Y, potentially targeting the $27 level. However, wave (2) should complete above $26.45 to signal the start of a larger bullish trend in wave 3. Should Silver fall below $26.45, it could imply that the commodity is correcting the entire bullish trend from 2024, opening the possibility of further downside.
Technical Analyst: Sanmi Adeagbo
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