Jan. 31 at 10:37 AM
$NUGT $SIL $SIL $DUST OptionsPlayers Silver Update: Understanding Corrections with Elliott Wave
We’ve had a lot of questions about what comes next for Silver, so let’s break down the structure clearly and calmly.
The recent move down from roughly
$121 to
$74 unfolded as a clean 5-wave impulse.
That detail matters.
In Elliott Wave, corrections do not complete in five waves. A 5-wave move signals an impulsive leg, not the end of a correction. That alone tells us it’s highly unlikely the corrective process is already finished.
The most common corrective pattern is a ZigZag, which follows a 5-3-5 structure:
• Wave A: impulsive decline (5 waves)
• Wave B: corrective bounce (3 waves)
• Wave C: final impulsive leg lower (5 waves)
Applying that structure here:
The sharp drop into the ~
$74 area is most likely Wave A
From here, we should expect a Wave B recovery bounce
Once Wave B completes, the market typically delivers Wave C lower to finish the correction
Only after the Wave B top is confirmed can we accurately project a high-probability target zone for the Wave C low using Fibonacci relationships and structural alignment.
In simple terms:
This bounce is likely corrective, not impulsive
Wave B rallies are often choppy, overlapping, and emotional
The higher-probability path still favors one more leg lower before the correction is complete
This is exactly why structure matters.
Instead of reacting emotionally to sharp moves, we let the wave count guide the roadmap. Elliott Wave doesn’t predict — it frames probabilities and keeps traders aligned with market structure.
Patience is key here.
Let Wave B play out. Once it’s in place, the next phase becomes much clearer.
This is the process.
This is disciplined technical analysis.
Stack your gains.
