Usman Salis
Silver has grabbed traders' attention again with a textbook Elliott Wave pattern unfolding. Following a solid rally from April's lows, the metal has pulled back into what technical analysts call a "blue box" - a high-probability buying zone that could signal the end of the current correction.
XAG/USD Price Analysis
Analyst identified silver's late July pullback as a classic three-wave A-B-C correction. The metal retreated from highs near $38.30 into the blue box zone spanning $36.648 to $35.627.
The analysis is clear: as long as $35.627 holds, the broader uptrend that began in April remains intact. The chart comes with a direct warning - "We Do Not Recommend Selling" - emphasizing the corrective nature of this move.
Key Levels for Silver Price
- Support: $36.648 and $35.627 (blue box boundaries)
- Resistance: $38.30, then $39.50
- Upside target: Breaking $39.50 opens the door to $40-41
This technical setup suggests we're seeing a healthy pullback rather than a trend change, keeping the bulls in the driver's seat.
XAG/USD Outlook: Why the Blue Box Matters
Blue box zones in Elliott Wave analysis mark high-probability reversal areas during corrections. Silver has historically respected these levels, giving traders solid entry points before the next leg higher.
With inflation concerns and ongoing safe-haven demand, the fundamental backdrop supports silver's technical picture. This adds weight to the case for a bounce if the blue box levels hold firm.
Usman Salis
