XAG/USD 4-hour Elliott Wave Theory analysis. Post-58.778 bottom Wave (V) impulse move, Wave 3(v) target and 1.618 Fibonacci extension. Updated technical analysis.
The recent movements in the Silver (XAG/USD) market in mid-May 2026 indicate the beginning of a significant uptrend within the Elliott Wave Theory framework. Detailed examination on the 4-hour chart shows that major Wave (IV) has completed and Wave (V) impulsive move is now active.
Elliott Wave Analysis: Current Structure
Examining the chart from the left side; after a major downtrend, Wave (IV) correction completed within a complex (W)-(X)-(Y) structure. Following this correction, Wave (V) impulsive movement began. The sub-waves within Wave (V) are clearly identifiable:
Table
| Wave | Status | Target Level | Fibonacci Ratio |
|---|---|---|---|
| (IV) | ??? Completed | 58.77811 | 0.618 |
| 1 | ??? Completed | ~75.000 | - |
| 2 (a)-(b)-(c) | ??? Completed | 70.86560 | - |
| 3(i) | ??? Completed | ~78.000 | - |
| 3(ii) | ??? Completed | ~72.500 | - |
| 3(iii) | ??? Completed | ~83.500 | 1.618 (82.09776) |
| 3(iv) | ???? Completing | ~80.34050 | - |
| 3(v) | ??? Pending | 89.64606 | 1.618 extension |
Wave 3(iv) correction is now completing. Current price is trading at 85.01000. Wave 3(v) final thrust has locked in 89.64606 target via 1.618 Fibonacci extension of Wave 1. This level is also marked on the chart as a significant resistance zone.
Alternative Scenario
If Wave 3(iv) deepens further, the previous 1.618 level at 82.09776 will act as critical support. A close below this level could weaken the Wave 3 structure and require a wave count revision. However, the current structure appears quite strong.
Why Does It Matter?
Wave (V) impulsive moves in Elliott Wave Theory represent the strongest and most characteristic movements of a trend. During this period:
• Risk management is critically important • Wave 3(v) final thrust may be the most profitable segment • 89.64606 target is important for profit-taking • When Wave (V) completes, a large-scale correction may be expected
Conclusion
XAG/USD 4-hour chart shows active Wave (V) impulsive move. While Wave 3(iv) is completing, Wave 3(v) is expected with 89.64606 (1.618 Fibonacci extension) as the critical target level. This analysis is for educational purposes; please do your own research before making investment decisions.