XAGUSD (Silver) dropped sharply last week doing a running flat correction before it managed to reverse and starts rallying strongly from 04/10 low. The move from there can be subdivided into 5 waves to the upside that ended on 04/13 peak and can make 3 waves pullback before resuming higher again while it’s holding above 17.71 low. If the metal continue rallying without the proposed pullback then it will be become a 5 swing structure with a connector (w) and (x) in place and (a) would become the 5th swing.
XAGUSD has a bullish 5 swing sequence from 12/20/2016 low because it managed to break above 02/27/2017 peak and it’s looking to extend higher toward the target at equal legs area 19.68 which can be reached around the next month before a big 3 waves pullback can happen from there. So until Silver reaches its target at 19.68 or the moves get deny it , then it will remain a buy into the dips against 17.71 in first degree and against 16.80 in second degree. Consequently to that we are looking to continue buying pullbacks in 3 , 7 or 11 swing and the first opportunity is coming if silver manage to drop toward 18.32 – 18.18 which is the area of the previous wave (iv) before it resume to the upside. The surprise would come if XAGUSD rallies from current levels either as part of 5 swings or a part of an irregular flat and in both cases the metal will be trading higher into the 19.68 are as long as pivots at 04/10 & 03/15 lows remain in place.
The 5 waves move from 04/10 low is adding more conviction to the bullish view of Silver because there will be continuation higher either as another 5 waves or as a 7 swings after the pullback. We at ElliottWave-Forecast.com think that Elliott Wave is a great language but it can’t be enough to forecast the market because the more important things are : Sequence , Cycle, Distribution, Time Price and Correlation.
XAGUSD (Silver) Elliott Wave Sequence video