Silver Pulls Back After Double Top Test

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Silver futures bounced off resistance at $82.67 on Tuesday. According to our primary scenario, the next key move will be for price to break through this level, which would open the way toward the red Target Zone between $92.25 and $111.28. In that area, we expect the prominent top of the green-labeled wave [w] to form, followed by a larger corrective move. Based on this outlook, traders could consider entering short positions within the $92.25 to $111.28 range, using a stop set 1% above the upper boundary of the zone. Alternatively, it’s possible that the green wave alt.[w] already peaked at $82.67 and price is now correcting directly below support at $69.26. If this scenario plays out—which we assign a 35% probability—a direct pullback into the alternative green long Target Zone between $53.26 and $47.16 would be expected.

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