Saad Ullah
Silver just finished what looks like a textbook three-wave pullback, and the bulls are back in charge. After bottoming near $41.10, the metal has resumed its upward march, giving traders a clear signal that the correction phase is behind us. This isn't just another minor bounce - the technical structure suggests we're looking at the start of something bigger.
Wave Count Signals Fresh Upside
Weekend analysis from Elliottwave Forecast confirms what many suspected: silver's recent decline was just a healthy correction within a larger bullish cycle. The three-wave structure played out perfectly, finding support exactly where it should have. Now we're seeing the early stages of a new impulse wave, with wave (i) currently in progress. There might be a small wave (ii) pullback coming, but that would just set up another buying opportunity before the next major push higher.
The key level everyone's watching is $41.10 - that's the line in the sand. As long as silver stays above it, the bullish case stays intact. Break above $43 and we could see momentum really pick up, potentially targeting the $44-$45 range in short order.
Right now, selling doesn't make sense from a technical standpoint. The momentum is clearly pointing higher, and the wave structure supports more upside ahead. For traders looking to get in, any minor pullbacks should be viewed as accumulation opportunities rather than signs of weakness.
Fundamentals Back the Technical Picture
The macro environment is lining up nicely for silver too. The dollar's been weakening, which traditionally gives precious metals a boost. Industrial demand remains rock solid, especially from the renewable energy sector where silver plays a crucial role in solar panel production. And with ongoing economic uncertainty, investors are still drawn to precious metals as a safe haven.
Saad Ullah
