Silver (XAG) Elliott Wave analysis: Final push higher before reversal [Video]

Silver (XAG) continues to follow our Elliott Wave outlook after completing the wave ((iv)) pullback at 60.8514. Buyers have driven the metal higher into the final five-wave advance in wave ((v)). The corrective rally is now entering its final stage. Although the short-term trend remains bullish, the Elliott Wave structure points to limited upside. We expect sellers to return once price reaches key Fibonacci resistance.

The 60-minute Elliott Wave chart shows Silver advancing in wave ((v)) of red wave C, which forms part of a larger wave (B) Flat correction. Fifth waves often extend toward the 1.236–1.618 Fibonacci external retracement of wave ((iv)). That gives an initial target between 63.42 and 64.24. Silver has already reached the 100% Fibonacci extension of wave A. However, buyers could still push prices toward the 161.8% Fibonacci extension near 67.00 before the rally ends.

Our Silver Elliott Wave forecast points to the 62.00–67.00 area as the next major resistance zone. We expect the current bounce to finish within the next 24 hours. After that, sellers should regain control and resume the larger bearish trend.

Overall, Silver remains bullish in the very short term while wave ((v)) continues to develop. Traders should avoid chasing prices into the earlier mentioned resistance zone. Instead, they should watch for signs of exhaustion before positioning for the next move lower.

XAG 60-minutes Elliott Wave chart

Video analysis