Silver Rebounds Strongly From Key Support Zone

After weeks of corrective movement, Silver (XAG) is showing fresh signs of bullish momentum. The metal's recent price action aligns perfectly with a technical setup where the price dipped into a designated high-probability reversal area before turning upward with precision. This reaction highlights growing optimism among precious metals traders.

Silver Finds Support in the Blue Box

The 4-hour chart from Elliottwave Forecast analyst shows silver completing a clean corrective structure from its July high near $39.0. The pullback reached the Blue Box zone between $36.6 and $35.6, which corresponds to key Fibonacci extension levels — a classic area for bullish reversals in Elliott Wave theory.

The forecast clearly noted a bullish bias with the recommendation against selling. The strong bounce from this zone confirms that buyers stepped in exactly where expected, validating the technical setup.

Technical Structure and Key Levels

• Primary Support: $36.6–$35.6 (Blue Box area) — validated as a successful reversal zone
• Resistance Zone: Around $38.3–$39.0 — the previous wave high
• Bullish Bias Active: As long as silver remains above $35.6, the structure suggests further upside potential

The chart now projects that the metal could continue climbing toward or above $39, marking the resumption of its larger bullish sequence.

Broader Context: Precious Metals Regain Momentum

Silver's technical rebound coincides with renewed investor interest in precious metals, supported by expectations of softer monetary policy and a weaker U.S. dollar. Industrial demand and speculative flows have provided a solid foundation for the metal's resilience, even during brief corrections. The Elliott Wave reaction adds technical confidence to this broader narrative.

Bullish Continuation Likely

With the correction phase likely complete, the latest rebound suggests that silver's uptrend remains intact. A decisive move above $38.5–$39.0 would further confirm bullish momentum and potentially set the stage for new highs later in 2025. As long as the price holds above $35.6, traders may continue favoring long positions aligned with the prevailing Elliott Wave bias. The precise reaction from the Blue Box demonstrates the reliability of identifying high-probability reversal zones and reaffirms silver's strength as a leading performer in the metals market.