Silver is expected to continue downside at the end of the current rallies. The following 25 July Silver Elliott wave analysis looks at XAGUSD forecast based on Elliott wave theory.
Silver and Gold have both dropped massively this year. Since mid-June, Silver has lost 215 points which is more than $2 per ounce. This week however, price rallied a bit up to 15.17 from 15.5. From Elliott wave perspective, the current price gains may not last long before another price drop. The wave pattern of this week rally looks corrective. The chart below shows a H4 chart of XAGUSD
25 July Silver Elliott wave analysis, H4 chart
From 17.34 in mid-June, price decline has the colors of an impulse wave. An impulse wave pattern formed like a wedge with an extended first wave. The current rally looks corrective and can go for the 4th wave in as much as it stays below 15.75. We could anticipate a drop to 14.80 before price makes a real big move upside. The current corrective rally looks very similar to the wave (ii) corrective rally that happened in the first week of this month. The chart below shows the internal wave structure of wave (iv).
25 July Silver Elliott wave analysis, 30 Mins chart
The chart above shows the construction of a double zigzag corrective pattern from 15.17. Price could advance further up to 15.65 before finally dropping to resume the bearish trend. The trend is still bearish until price shows otherwise. A break above 15.75 will invalidate this forecast and tell a different story.
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