Peter Smith
Silver just did something that has traders sitting up and paying attention. The metal blasted past $40 and is holding strong, marking what could be the start of a major Wave 5 extension under Elliott Wave theory. This isn't just another bounce - the technical setup suggests we might be looking at a sustained move higher that could reshape the precious metals landscape.
Wave 4 Correction: Mission Accomplished
Analyst Erina called it perfectly. Silver wrapped up its Wave 4 correction at $36.20 in textbook fashion, setting up the perfect launch pad for what we're seeing now. The correction was a classic flat pattern that shook out weak hands before the real move began. Now silver is trading around $42.10, comfortably above that crucial $40.53-$40.88 support zone that confirms the bulls are back in charge.
Here's what matters most right now: $38.74 is the line in the sand. As long as silver stays above this invalidation level, the bullish story stays intact and we could see this thing really take off.
Key Levels That Matter
- Current Position: Silver is consolidating around $42.10, just testing near-term resistance
- Critical Support: $40.88 and $40.53 are the levels to watch, with $38.74 as the ultimate cycle invalidation point
- Upside Targets: A full Wave 5 extension could rocket silver toward the 2.618 Fibonacci projection near $43.50-$44.00
- Short-Term Strategy: Expect some minor pullbacks that could offer fresh entry points before momentum kicks back in
The Bigger Picture
This isn't just about charts and waves. Silver's getting a double boost from safe-haven demand and its growing role in green technology and solar panels. With inflation still a concern and global markets on edge, silver is catching bids from both scared money and smart money betting on the energy transition.
Silver's $40 breakout isn't just noise - it's a statement. The technical setup looks solid, the fundamentals are supportive, and as long as we stay above $38.74, this Wave 5 could deliver targets in the mid-$40s. Watch for any short-term weakness as buying opportunities rather than signs of trouble. This rally might just be getting started.
Peter Smith
