Silver broke below the 16.5 support level last week and came close to $16.1 before making a quick, sharp breakout move upside. In the last update on commodities, we discussed about this possibility. Let’s look at what we expect next based on 9 October Silver Elliott wave analysis.
In the last update, we expected at least a 3-wave corrective move upside once price completes the impulse wave. Support level was set at 16.5-16.06. The chart below was used.
If price is resisted below the yellow trendline above, the next support lies at 16.06. A breakout upside will be required to consider the bullish move expected.
Price got to this reversal zone and bounced back sharply. This is an indication of a strong bullish momentum. A rally to 17.6 is now more probable than not.
9 October Silver Elliott wave analysis, what next?
The chart below shows the breakout and what is expected next.
A 3-wave correction to 17.5 is expected at least if this wave count is correct. The significant breakout is the biggest bullish push since the beginning of the impulse wave. A slight dip may happen before price continues the corrective move upside. This forecast is invalid below 16.28.
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