Saad Ullah
Silver just crossed $42.50 and isn't slowing down, but the party might be about to pause. After months of steady climbing, the metal is staring down a resistance zone that's historically been trouble.
Technical Picture: Wave Structure Points to Pullback
The Elliott Wave pattern playing out suggests we're near the peak of wave (iii), and Elephant Capital is warning traders to stay sharp as silver tests these critical mid-$43 levels.
The five-wave Elliott structure is textbook perfect right now. Silver's been climbing methodically, but that $43.50-$45.50 zone is where things get interesting. This is likely where wave (iii) tops out, setting up a wave (iv) correction that could drag prices back toward $39 - right where previous support held firm.
Key Levels to Watch:
- Wave (iii) completion: $43.50-$45.50 resistance zone
- Wave (iv) pullback target: Around $39 support
- Wave (v) breakout potential: $50-55 for new multi-year highs
The Fibonacci extensions are backing this up, with the 2.618 level sitting right at $45.50 as a major technical marker.
What's Driving This Rally
The Fed's potential rate cuts are making precious metals look attractive again. Industrial demand keeps growing as silver gets used in everything from solar panels to EV batteries and electronics. Plus, with all the geopolitical noise and economic uncertainty, investors are still piling into safe-haven assets.
Saad Ullah
