Silver Elliott Wave Analysis

Silver is trading at a new 2024 high after another big breakout from the pullback earlier in October. The commodity is set for more gains toward the $40s in the coming weeks. Buyers will continue to find opportunities from the dip to push prices higher.

On the daily chart, the current bullish phase started in January 2024 after the price ended a prior sideways accumulation stage that lasted throughout the year 2023. Meanwhile, the bullish cycle from January 2024 could either emerge as a 3-wave structure or a 5-wave structure. In either case, Silver should reach $37-41 at least. If the price exceeds the $41-$43 zone, then the bullish development from January will be an impulse 5-wave structure instead of a 3-wave. Thus, the two scenarios favor further rallies in the coming weeks. A close look shows the price currently in wave 3 of (3). After wave 3 has finished, pullback for wave 4 will follow and thus give buyers new entry. Meanwhile, on the lower time frame, traders can also trade along the path of wave 3 which currently is incomplete.

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On the h4 chart, we reckon that price is in wave ((iii)) of 3. After completion of ((iii)), wave ((iv)) will emerge lower and present opportunities for buyers along the path of wave 3. However, if the next pullback is deep, it could be ((ii)) of 3 which will suggest an extended wave 3 and more profits for buyers. Buyers can continue to wait for pullbacks and buy from potential pivot lows.

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