Silver (XAGUSD): Starting to go up!

Silver (XAGUSD): XAGUSD

In Silver, we believe we have formed the low with Wave 2 at $21.93. Since then, we've developed Waves (i) and (ii), and now likely Wave (iii) as well. It appears we've caught up with Wave (5) at the 50% extension level at $25.36. Should we now drop for Wave (iv), we expect it to be in the range between 38.2% and 61.8%, more precisely between $24.12 and $23.30. The $23.30 level is also our invalidation level, as that's where the stop of Wave (i) is located. Initially, we believe we will accept the support zone at the subordinate Wave (4) for the overarching Wave (iv). We see this as a very interesting zone and, looking upwards, we believe we will head towards the $26 mark.

Comment:

Since our last analysis shortly before the FOMC meeting, we've experienced a strong surge in silver, which then found resistance at the 138% level and has since sharply declined. We reached up to $25.78 during the subordinate Wave (B), followed by a total sell-off below the level of Wave (A), and are currently below $25. We still anticipate Wave (C) and Wave (iv) to occur between 38% and at most 61.8%, i.e., between $24.12 and $23.30. Nothing has changed in our outlook; we maintain that we should now see a sell-off down to Wave (iv).