Elliott Wave Perspective: Silver (XAGUSD) Sequence Maintains Downside - Forex | PriceONN
Silver (XAGUSD) continues to exhibit an incomplete sequence from the January 29, 2026 high, suggesting that further downside remains possible. In the short term, the cycle from the May 14, 2026 high is unfolding as a double three Elliott Wave structure. From that peak, wave (W) concluded at 61.46, while the corrective rally in wave […] The post Elliott Wave Perspective: Silver (XAGUSD) Sequence Maintains Downside appeared first on ActionForex.

Bearish Momentum in Silver Intensifies

The precious metal Silver (XAGUSD) is currently charting a course that suggests further declines are on the horizon. Its price action since the January 29, 2026 high presents an incomplete sequence, a key indicator for analysts watching Elliott Wave principles. This suggests the market has not yet found its bottom, and the potential for lower prices remains elevated.

Zooming into the immediate trading landscape, the movement originating from the May 14, 2026 peak is taking shape as a double three Elliott Wave formation. This complex pattern, characterized by a series of corrective waves, implies a period of choppiness before a more decisive directional move. Within this structure, wave (W) concluded its descent at the 61.46 level. Following this, a counter-trend rally, labeled wave (X), managed to reach a peak of 71.6 before losing steam.

XAGUSD Technical Analysis | PriceONN
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The Resumption of Selling Pressure

The market has since recommitted to the downside, initiating wave (Y). This leg of the pattern is itself subdividing into another double three structure, albeit of a smaller magnitude. This intricate layering of corrective waves reinforces the narrative of persistent bearish sentiment. It’s a clear sign that the selling pressure, while perhaps not always linear, remains the dominant force within this larger corrective phase.

Focusing on the movements since the termination of wave (X) at 71.6, the initial wave W reached 55.57. Now, a corrective wave X is in play. This rally is expected to be a retracement of the price action seen since the June 18, 2026 high. The critical aspect here is that this corrective move is viewed as a precursor to the metal resuming its downward trajectory. The prevailing sentiment is that this rally will ultimately falter.

Key Resistance Levels to Watch

The outlook for silver remains subdued as long as the pivot point at 71.6 holds firm. This level acts as a crucial ceiling, and any rallies failing to decisively break above it are anticipated to conclude within three or seven distinct price swings. This reinforces the conviction that further weakness is the most probable outcome.

Analytically, resistance is being eyed within the 62 to 65 price zone. This range is significant as it aligns with the 100% to 161.8% Fibonacci extension levels derived from wave ((a)). This area represents a critical inflection point. A failure to push beyond this zone would strongly suggest that the corrective phase is exhausting itself, setting the stage for a renewed onslaught of selling pressure and the continuation of the broader bearish trend.

Trader Takeaways

The current Elliott Wave structure for Silver (XAGUSD) strongly suggests a continuation of the downside move, contingent on the 71.6 resistance level holding. Traders should be wary of chasing rallies within the anticipated 62-65 resistance zone. A rejection from this area would serve as a strong confirmation signal for the bearish outlook.

This technical picture for silver could have ripple effects across related markets. Investors might consider the potential impact on other precious metals like Gold (XAUUSD), which often moves in correlation, though sometimes with differing intensity. Additionally, the US Dollar Index (DXY) could see strength if silver's weakness is part of a broader flight to safety or dollar-positive sentiment. Mining stocks, particularly those focused on silver production, may also face headwinds if the price decline is sustained. A key risk to monitor is any unexpected macroeconomic data or geopolitical event that could abruptly shift sentiment and invalidate the current wave count, especially if silver decisively breaks above the 71.6 level.

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