Since forming the low on November 2018 at $13.9, Silver has rallied 40% to current price of $19.4. The move higher from $13.9 low took the form of a 5 waves impulsive Elliott Wave structure. On the 1 hour chart below, we can see wave (4) pullback ended at $16.92. The metal has since resumed higher in wave (5) with subdivision as another impulse in lesser degree. Up from $16.92, wave 1 ended at $18.65 and wave 2 ended at $18.02.
Near term, while dips stay above $18.02, Silver should continue to see more upside. We don’t like selling Silver and expect buyers to appear to buy the dips in 3, 7, or 11 swing. This view is valid as far as pivot at $18.02 low stays intact in the first degree. Possible target to the upside is 2.618% Fibonacci extension from Nov 2018 low which comes at $20.2 – $20.3 area. This is likely going to end only wave ((3)) in higher degree from Nov 2018 low, so it won’t end the entire rally yet. After it reaches the target of $20.2 – $20.3, Silver has chance to do a larger pullback to around $18 – $19 in wave ((4)) before another leg higher to end 5 waves up from November 2018 low.
Silver 1 Hour Elliott Wave Chart
