Silver XAGUSD Elliott Wave Technical Analysis
Function -Counter-Trend
Mode - Corrective
Structure -Double Zigzag for wave B (circled)
Position - Wave (Y) of B
Direction - Wave 1 of (1) of C (circled)
Details - It appears wave B (circled) has been completed and wave C (circled) is now emerging upside. We are now counting wave 1 of (1) or wave (1).

Silver continues to recover from the pullback that began in late May 2024. This recovery is expected to lead to another series of rallies, continuing the year-long bullish impulse cycle. Both long-term and medium-term Elliott Wave forecasts support further rallies for this precious metal.

Daily Chart Analysis

On the daily chart, we identified that the impulse wave sequence starting in January 2024 completed in May 2024, followed by a corrective pullback. This bearish corrective structure, which lasted for five weeks, appears to have concluded with a double zigzag pattern. However, the correction is relatively shallow, suggesting the possibility of another leg lower. Yet, if the impulse reaction from late June continues to rise and does not turn corrective, it would indicate that the market has accepted the shallow nature of the pullback. Overall, it is likely that Silver will continue to climb, potentially reaching new highs in 2024.

(Click on image to enlarge)

H4 Chart Analysis

On the H4 chart, the impulse response is in the process of completing the first sub-wave, or wave 1. Currently, wave iv (circled) might experience one more leg lower before reversing upwards to complete wave v (circled), thereby finishing wave 1. Following this, a larger pullback for wave 2 is expected. Conversely, if the current dip extends below $30, we may consider the high on July 5, 2024, as the end of wave 1 and the current dip as wave 2. In either scenario, provided that Silver's price does not approach $28.5, the price action supports further rallies from the dip, continuing the year-long bullish sequence.

(Click on image to enlarge)

Conclusion

Both the daily and H4 charts indicate a continued bullish trend for Silver, with several opportunities for traders to position themselves for further gains. By closely monitoring the development of wave 1 on the H4 chart and the overall impulse sequence on the daily chart, traders can identify strategic entry points to maximize their returns amidst this upward movement. The shallow nature of the recent correction suggests that Silver's bullish momentum remains intact, and further rallies are likely as the metal continues its long-term ascent.

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