Silver Elliott Wave Analysis: A Path Toward New Heights

Silver XAGUSD Commodity Chart Analysis

Silver XAGUSD Elliott Wave Technical Analysis

Function: Trend

Mode: Trend

Structure: Impulse for (A)

Position: Wave 5 of (A)

Direction: Active Wave 5 of (A)

Details: Impulse Breakout Underway in Silver's Wave 5

Silver is currently making significant strides in its price movement, embarking on the fifth wave of its Elliott Wave sequence labeled as (A). This phase is marked by a robust impulse breakout from the diagonal conclusion of wave 4, setting the stage for the first sub-wave—termed blue wave i (circled) of 5 of (A).

Silver’s Bullish Recovery: Testing 2013 Highs

Since recovering from its April 12th downturn, which lasted nearly three weeks, silver has regained its momentum and is on track to challenge the peak prices of 2013. This revival signals a continuation of the bullish trend that has characterized the majority of the year.

Long-Term Prospects: A Beacon for Buyers

Looking at the long-term performance, silver reached its lowest point in March 2020 at $11.645, establishing a strong foundation for a potential rally. Current patterns and analyses suggest a likely progression into a corrective phase, possibly adopting a zigzag or double zigzag structure. The daily chart analysis reveals a double zigzag pattern in progress within the third leg of the supercycle degree—wave (y). Projections for wave (y) indicate a possible extension to the 100% projection of wave (w) from (x), suggesting a silver price target of $35.78. This scenario would represent a 25% increase from its current price, potentially materializing over the next six months or longer.

Alternatively, the bullish trajectory from the March 2020 lows could be interpreted as an impulse wave, aiming for higher targets beyond $42.75, with possibilities of reaching up to $47.00. Regardless of the pathway, silver is positioned for continued upward trends in the near future.

Near-Term Analysis: H4 Chart Insights

The impulse wave sequence that began in January 2024 has recently completed its fourth wave—wave (4)—characterized by a zigzag structure. The momentum is now poised to propel the commodity higher into wave (5) of the primary degree wave A (highlighted in blue). With the critical support level at $26.022 remaining intact, silver is expected to attract considerable buying interest in the upcoming weeks and months.

Technical Analyst: Sanmi Adeagbo

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