Price had rallied more than 11% today to $30.03 an ounce and was on track for its biggest one-day rise since 2008. Price has gained about 19% since last Wednesday. Investors started to focus on silver last Thursday after messages began to circulate on Redditt urging retails investors to pile into silver and drive up prices. Price had since climbed from $24.05, just 2 weeks ago to a high of $30.03 this afternoon. Can silver continues to move higher?
Looking at the chart using Elliott Wave theory, we can see that from the low of $24.05 to the high of $30.03, there is a clear 3-wave movement. The rally to the high at $30.03 could be the 3rd wave. If this is the case, we are likely to see a correction to $28.75. It is possible for price to move lower to Fibonacci 50% correction point at $27.35, but we think a previous trendline is likely to support price at $28.75. Another strong support zone is from $27.90-27.98 and this could also halt the price decline. From these supports, we see a rally past $30.03 to complete this rally.
Stochastic is in the overbought zone but Stochastic is still showing strength. MACD is bullish with its fast line high above the zero line, hinting of a strong bullish trend. Both momentum indicators are able to support a price move above $30.03.