We last wrote about Silver in March 2019, when the precious metal was hovering slightly above $15. Our analysis of its 4-hour chart gave us plenty of reasons for optimism. And indeed, six months later in September the price reached $19.65.
Currently, silver is trading near $17.75, up from $16.53, but still down from that September 2019 high. In order to get an idea about the metal’s intentions going forward, let’s turn to the charts once again. The hourly chart below makes a strong bull case.
It reveals that silver’s recovery from $16.53 to $18.86 is a textbook five-wave impulse. The pattern can be labeled 1-2-3-4-5 where the sub-waves of wave 3 are also visible. It is interesting to note that wave 4 is a running flat correction.
A three-wave retracement follows every impulse. Here, that three-wave drop looks like a simple A-B-C zigzag with an expanding triangle in wave B. Wave C seems to have ended shortly after touching the 61.8% Fibonacci level.
If this count is correct, there is a complete 5-3 wave cycle on silver’s hourly chart. According to the Elliott Wave theory, the trend can now be expected to resume in the direction of the impulsive sequence. We think the bulls might not have to wait too long to conquer $19 and beyond.