The price of silver bottomed at 15.62 in the last month of 2016 and has been in an uptrend ever since. The precious metal is currently trading at $18.33, after recovering from its mid-March swing low. On the other hand, we could also say that the current price of silver is in the middle of a range, whose upper boundary lies near $21.10. Should we expect a surge towards it, or a crash in the other direction? Let’s take a look at the daily price chart and see what the Elliott Wave Principle has to say about it.
Now, we can see silver’s entire progress since the bottom at $13.64 in December, 2015. The sharp rally up to $21.11 could be seen as a simple (a)-(b)-(c) zig-zag. This whole corrective sequence is labeled as wave W, because the following weakness to $15.62 in wave X is also a zig-zag with a triangle wave (b) and an ending diagonal in the position of wave (c). This means that wave Y to the north is currently underway. According to the theory, it is supposed to lift the price of silver above the top wave W. If this count is correct, the bulls are going to remain in the driving seat for a while. The $22.00 mark looks like a reasonable target, as long as the bottom of wave (b) of Y is out of danger.
