Silver is in an impulsive recovery away from 22.05 lows and there’s room for more upside as it can be unfolding a five-wave bullish cycle from Elliott wave perspective. It’s actually moving nicely as expected for now and we still see it trading in an (a)-(b)-(c) correction within wave »iv« with ideal support here around base channel resistance line and 24.00 level before the uptrend for wave »v« of 3 resumes.
The main reason why we remain bullish on silver is 10Y US Notes chart, which is in tight positive correlation with metals. As you can see, after a failure break of March 2023 lows, we have seen strong recovery on both assets. They are probably just making a corrective pullback before a continuation higher.
From Elliott wave perspective, 10Y US Notes is finishing a complex (W)-(X)-(Y) corrective setback in B/2 with ideal support here around 111 level. So, if we are on the right path and if 10Y US notes will continue higher into wave C or 3, then silver could easily stay in the bullish trend.
