Elliott Wave Update II: Silver’s Surge – Tracking the Rally and What Comes Next
Elliott Wave Update II: Silver’s Surge- Tracking the Rally and What Comes Next
Hello Traders, and welcome to a new free update, which will be a follow-up on Silver that we covered back on September 6th. Since then, we’ve seen a strong recovery in this metal. As you may recall, we were looking for a potential bottom formation around $28, which aligned with the 61.8% retracement. You can check that article by clicking here.
So, where do we stand now? Since then, Silver has rallied back to new 2024 highs, largely driven by central banks easing across the board. The Fed, Swiss National Bank, and ECB have all been cutting rates, and now also this week, China has taken steps to stimulate its economy. As a result, we’ve seen a sharp rise in Chinese stocks, and with a stronger Chinese Yuan, metals are performing well.
When prices reach new highs, such as breaking to new yearly highs, it’s important to zoom out and focus on higher time frame levels. So, before diving into the smaller time frame charts, let me remind you that Silver is coming out of a large triangle this year, with a measurement that targets levels around $35 to $34. This suggests that sooner or later, we could run into some significant resistance on Silver.
There may still be more upside after pullbacks, as shown on the 4-hour charts, but looking ahead into 2025, we could see big changes in cycles—especially once the Dollar Index potentially reaches the key support area around 97. But for now, metals and other assets can remain in an uptrend until the Dollar Index breaks below that the July 2023 lows. When that happens, we’ll likely be entering the late stages of dollar weakness, which may signal that metals are also nearing potential highs.
Looking at the near term price action and Elliott Wave forecast, more gains in Silver can be expected, especially since this 5th wave up from $26.50 should be structured by five subwaves, but we haven’t completed that yet. So, if you’re a short-term trader, buying dips still makes sense, but the price should stay above $30 for now.
Trade well,
Grega
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