Silver Price Forecast: Silver hits new high amid uptrend and faces resistance

Elliott Wave points to 35.05

Adding simple Elliott Wave analysis to the current uptrend shows that silver is likely in a fifth wave position with the current rally. Waves are shown in purple on the chart, with a target from the fifth wave at 35.05. This assumes that the fifth wave matches the first. Still, it provides another price level to observe the reaction. Also note that there is a 61.8% Fibonacci retracement level at 35.23, which is very close to the 35.05 target. Therefore, the 35.05 to 35.23 target zone seems to have a good chance of being reached before the rally is completed.

127.2% extension hits

Still, given today’s price behavior, silver prices could see a decline before continuing their rise. Today’s high reached an area of ​​potential resistance and so far silver is seeing signs of resistance. An extended 127.2% retracement of the recent decline from the May swing high was reached today at 34.14. A pullback could see a test of support around the previous resistance area at 32.96. Then, further down, the previous swing high is 32.51. The 20-day MA at 31.76 is crucial for the uptrend. Note that the new high breakout began on Friday with a successful test of support around the 20-day line earlier in the day.

The big bull flag is pointing at 41.70

There is upside potential for silver. The larger picture on silver shows a major bull flag pattern that began at the 2020 lows. Around the beginning of March this year, there were signs of a sustained outbreak, which was followed by an accelerated increase. If the flag pattern continues to progress, it shows a potential target for silver at around 41.70. This means investors and traders will likely continue to take advantage of pullbacks to enter or add to positions, supporting prices.

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