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Silver Elliott Wave Analysis- ‘Buy the Dip’ to continue the rally?

Silver Elliott Wave Analysis 

Function - Counter-trend 

Mode - Impulse 

Structure - Impulse 

Position - Wave 3 of (A) 

Direction - Wave 4 of (A)

Details - Wave 4 dip is ongoing. Expected to be shallow probably toward 24.5 before resuming higher for wave 5 of (A).

In slightly over a month, Silver surged over 13%, marking a bullish impulse wave rally poised to conclude the one-year range initiated in February 2023. A breakout from this range is essential to propel the commodity above $26.5, marking its first ascent beyond that mark since March 2022. This constitutes the overarching multi-month trend.

Zooming in on shorter time frames, a dip is manifesting subsequent to the metal reaching its 2024 pinnacle. Despite this pullback, anticipations are for subsequent upward movements, targeting the psychological threshold of $26. In this Silver Elliott wave analysis, we'll scrutinize the structures, pivotal levels, and projected outcomes.

Examining the daily timeframe, the price remains within a corrective rally that commenced at 16.56 in September 2022. A double zigzag pattern is discernible, expected to elongate toward the $30-30.18 range in the medium term. Wave W concluded with a zigzag, succeeded by X exhibiting a triangle pattern. Emerging from wave (E) of X, wave Y ascends higher, likely subdividing into three waves (A)-(B)-(C). Wave (A) nears completion around the 25 mark. Hence, for swing traders, the optimal strategy is to buy into the forthcoming dip after wave (B). Meanwhile, wave (A) might still witness one additional upward leg before the dip, as illustrated on the 4-hour chart.

On the 4-hour chart, wave 3 of (A) is yielding ground to a wave 4 pullback and could find support within the 24.686-24.215 Fibonacci retracement zone if it gets there. Should this zone indeed provide support, followed by a rebound, another rally to 25.5-26 is foreseeable before a larger pullback for (B) commences?

Technical Analyst : Sanmi Adeagbo

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