Silver Update: Wave Four Pullback Unfolding After Sharp Decline

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Back on March 4, we discussed the potential for a deeper corrective phase in silver following its extended bullish run, and that scenario now appears to be playing out. CHECK IT HERE

Silver experienced a sharp decline, dropping more than 40% from its January all-time highs. This type of move was not unexpected, as a higher-degree retracement always remained a strong possibility after the massive rally of more than 300% from the April 2025 swing lows.

Looking at the lower time frames, particularly the 4-hour chart, the initial decline appears clearly impulsive, reinforcing the view that the correction is not yet complete and that a larger wave four structure is unfolding. We identified a clean three-wave recovery within wave B, which stalled precisely within our projected resistance zone between 92 and 100. From there, the market has turned sharply lower.

This current sell-off is likely part of wave C, specifically its third leg, which has already pushed prices down toward the $60 area. However, based on internal wave structure and subdivisions, there is still room for further downside, potentially extending toward the $50 region.

Following the completion of this leg, we could see a temporary recovery in wave four, with price possibly revisiting the $74 resistance zone. However, traders should remain cautious, as another leg lower within the fifth wave of C could follow before the broader correction is complete.