Executive Summary
- Silver is going through a small degree decline to set up the next wave 3 advance
- Longer-term trend is up
- Silver prices should remain above $27.69 under this model and possibly reach $36
Silver’s Rally to Resume After Brief Dip
Silver has been exhibiting some weakness over the past week. From an Elliott wave perspective, we are viewing that weakness as a smaller degree wave ii. This means when wave iii begins, it will be wave iii of 3 and will lead to a strong bullish rally.
Back on August 28, we forecasted:
“We’ll likely see a wave 3 bullish reversal in the $27.80-$28.70 price zone in the next week or so.” Silver Shine and Climb August 28
On September 6, the finishing touches of wave (ii) were put in place at $27.69, just below the target range. Wave (iii) began and shall unfold as five waves for this count to remain correct.
The first of those five waves is in place at the September 26 high of $32.72. After a brief correction in wave ii, then wave iii of (iii) will trend to the upside.
Wave ii’s bottom is nearing the terminal point. Since we are potentially in an extended third wave rally, the decline in wave ii may remain on the shallow end. There is a cluster of wave relationships showing up $30.55-$30.79.
If silver declines further, then $29.48-$29.70 is the next level of wave relationships that may halt silver’s decline.
Bottom Line
Silver is declining in wave ii of (iii). This decline is anticipated to make a bullish turn near $30.55-$30.79 or possibly $29.48-$29.70.
Once the wave ii decline is over, then silver would rally in wave iii of (iii) that likely reaches $36-$39 over the coming months.
This forecast would remain valid so long as silver holds above $27.69.
You May Also Be Interested In:
Nikkei Elliott Wave: More Dark Days for the Rising Sun?
Kiwi’s Turn to Emerge (NZDUSD Elliott Wave)
