Silver has been mostly sideways since 2021 and till 2024, when metal clearly formed a corrective price action because of choppy and overlapping moves. Ideally, that was a very big triangle that sent prices sharply higher this year as shown on weekly chart below. We have seen some nice turn up, due to inflation hedge, CB easing and geopolitical tensions. In fact, we can see some volatility in last few weeks with sharp move out of a big contracting range; its an impulsive reaction since price broke above $25, but notice that price now trades $34-37 area as expected; marked as potential resistance zone identified by swing highs from 2012, 2013, and Fibonacci levels.
The reason why we should be aware of a resistance on silver and also gold, is gold/silver ratio (XAUSD/XAGUSD ), which is pointing higher after an A-B-C corrective setback. Based on past correlations, bullish gold/silver ratio is usually bearish for metals, so if ratio start moving higher, then watch out for a limited upside on silver. From an Elliott wave perspective this push higher on XAUSD/XAGUSD chart would deffinitely not be a surprise because of bullish pattern.
If someone wants to join uptrends on gold and silver, then due to the reasons described above, it may not be a bad idea to wait on some pullback first. $30 can be an interesting levels in such case.
For a detailed view and more analysis like this, you may want to watch our latest recording of a live webinar streamed on October 21 2024:
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