Elliott Wave points to 35.05
Adding a simple Elliott Wave analysis to the current uptrend shows that silver is likely in a fifth wave position during the current rally. Waves are shown in purple on the map with a fifth wave target around 35.05. That assumes the fifth wave matches the first. Nevertheless, it offers a different price point to view the reaction. Also note that there is a 61.8% Fibonacci retracement level at 35.23, very close to the 35.05 target. Therefore, it seems that the target zone from 35.05 to 35.23 has a good chance of being reached before the rally is completed.
127.2% Extension Hit
Nevertheless, given current price behavior, silver could pull back before continuing its rise. Today’s high reached an area of potential resistance and so far silver is seeing signs of resistance. An extended 127.2% retracement of the most recent decline from the May swing high was reached today at 34.14. A pullback could fall to test support around the previous resistance area at 32.96. Then, further down, the previous swing high is at 32.51. Crucial to the bull’s advance is the 20-day MA at 31.76. Note that Friday’s new high breakout began after a successful test of support around the 20-day line earlier in the day.
Big bull flag points to 41.70
There is upside potential for silver. The bigger picture on silver shows a major bull flag pattern starting from the 2020 low. A sustained breakout was indicated around early March of this year, followed by an accelerated advance. If the flag pattern continues to develop, it indicates a potential target for silver around 41.70. This means that investors and traders will likely continue to use pullbacks to enter or expand positions, supporting prices.
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