Silver Elliott Wave Analysis
Function -Trend
Mode – Trend
Structure -Zigzag for wave 2
Position – Wave 2 of (5)
Direction – Wave 3 of (5) in play
Details – Wave 2 appears to have been completed for wave 3 emergence above the 30 major level. Further rally expected to complete at least 3-swing or preferably an impulse breakout for wave 3 advancement.The bullish trend in Silver, which began in January, paused for a pullback starting on May 20th. However, indications suggest that this trend is likely to continue, and the current pullback may have already concluded. This analysis explores a new target for buyers.On the daily chart, Silver broke out of a year-long sideways structure that persisted from January 2023 to January 2024. Since then, the price has evolved into a five-wave impulse structure of the intermediate degree. Wave (4) ended on May 3, 2024, setting the stage for wave (5). The pullback from May 20th appears to be corrective, suggesting that the bullish extension to 32.54 may not suffice to complete wave (5). Thus, the current pullback is identified as wave (2) of 5.  On the H4 chart, wave 2 of (5) seems to have completed a corrective zigzag pattern at a key demand zone where fresh bids are expected. The price is anticipated to advance further in wave 3 of (5), targeting at least 38.85, but ideally reaching the 38.33-39.85 Fibonacci extension zone. Alternatively, if the current bounce from wave 2 ends up forming a corrective structure, we may see an extension lower in a double zigzag pattern for wave 2. Given that the current wave 2 pullback is below the 50% retracement of wave 1, the alternative scenario is plausible.  Buyers should monitor the structure that evolves from the minor bounce on June 4th. If an impulse wave forms, it will support the idea of wave 3 higher. However, if the bounce is corrective, it might indicate a continuation lower in wave 2. This differentiation is crucial for determining whether the price will move higher in wave 3 or lower in an extended wave 2.In summary, Silver’s bullish trend, which resumed after breaking out of a year-long sideways structure, paused for a pullback starting on May 20th. The daily chart indicates a five-wave impulse structure, with the current pullback identified as wave (2) of 5. The H4 chart suggests that wave 2 of (5) has completed a zigzag pattern, setting up for a potential advance in wave 3 targeting 38.85 to 39.85. However, if the bounce from wave 2 is corrective, a further extension lower in wave 2 is possible. Traders should watch for the structure of the June 4th bounce to determine the next move, with an impulse wave indicating a higher wave 3 and a corrective wave suggesting a lower wave 2.More By This Author:Elliott Wave Technical Analysis: Spotify Technology
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