Silver Price Analysis: Consolidating within up leg of price pattern
- Silver is consolidating within the third and final up leg of a price pattern.
- The price will probably continue up to a target in the upper $32.00s.
- Silver has broken out of a falling channel and above a four-year resistance level.
Silver (XAG/USD) consolidates after breaking out of a falling channel and above a four-year old resistance level. It is probably in the process of rising up in the final wave C of a three-wave Measured Move (MM), with a final price target substantially higher than the current market level.
Silver Daily Chart
MMs are like large zig-zags composed of three waves, sometimes labeled A,B and C.
Wave C will probably reach the 0.618 extrapolation of wave A at $32.75, as a minimum expectation. If wave C is the same length as A – as is often the case – then it could reach $35.00.
A break above $31.49 would provide confirmation of the next leg higher.
Author
Joaquin Monfort
FXStreet
Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.
