Investing in silver? Pay attention to these key Elliott Wave and Fibonacci levels that could indicate the next moves for the precious metal.
According to Elliott Wave analysis, silver is currently in a likely fifth wave position with the current rally. The fifth wave target is around 35.05, assuming it matches the first wave. Additionally, there is a 61.8% Fibonacci retracement level at 35.23, very close to the target. This target zone of 35.05 to 35.23 looks promising for a potential rally completion.
However, with today’s price action, silver may experience a pullback before continuing its ascent. The 127.2% extension of the most recent decline from the May swing high was hit at 34.14, indicating potential resistance. A pullback could test support levels at 32.96 and 32.51, with the 20-Day MA at 31.76 critical for maintaining the bullish trend.
Looking at the bigger picture, silver also shows a large bull flag pattern that started from the 2020 lows. A sustained breakout in early March led to an accelerated advance, with a potential target of 41.70 indicated by the flag pattern. This suggests that investors and traders are likely to use pullbacks as opportunities to enter or add to their positions, providing support for silver prices.
Stay updated on economic events and market trends by checking out our economic calendar for all the latest information. At Extreme Investor Network, we provide valuable insights and analysis to help you make informed investment decisions. Visit our website for more exclusive content and actionable tips to enhance your trading strategy.