Silver made a very sharp decline, dropping more than 40% from the all-time highs back in January. This is something we were concerned about, as a higher-degree retracement was always expected after the massive move of more than 300% from the April 2025 swing lows.
XAGUSD(silver) Daily Chart
On the smaller 4-hour time frame, the first decline clearly looks impulsive, which supports the idea that this move is not finished yet and that a larger wave four correction is underway. In fact, we can now count three waves up within a B wave structure, which stopped at our danger zone between 92–100 resistance, where the market has already started to show signs of weakness.
XAGUSD(silver) 4H Chart
A broken channel on the lower time frame further reinforces the bearish outlook and could cause additional near-term pressure before the correction is complete.
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