SILVER D1 Silver has completed a strong five-wave impulse from the 2022 lows to the May high, followed by a correction W-X-Y. Currently, it is in a descending wave (Y), with Fibonacci projections targeting the 0.618 and 0.5 correction zones. The correction remains valid as long as the price stays below the trend channel resistance. The silver correction has the potential for further growth. The May peak completed a classic 5-wave rally from the 2022 cycle lows, with the subsequent decline forming a complex W-X-Y pattern. Wave (X) bounced off the 0.618 correction level at 77.53375 and then reversed. This is a classic correction behavior, and now wave (Y) is in the process of forming, with the blue projection arrow indicating significantly lower levels. The trend channel resistance limits any rebound attempts. A breakthrough above this diagonal will break the bearish trend and bring back a larger uptrend into play, but until then, continued pressure on the lower Fibonacci zones can be expected in the coming months. SILVER H4 Silver has completed a five-wave decline from the May highs and is now in the second wave (iii) of a larger descending wave. The blue projection shows that wave iii is targeting significantly lower levels. The cancellation level is at 89.37970, where the red zone is located. The corrective rebound in silver is fading. The blue wave II appears to be forming a triangle, with wave E approaching the upper boundary near the 0.618 correction level at 78.76861. Triangles mark the end of corrections before sharp moves in the direction of the larger trend. After breaking down this consolidation, wave III should provide a significant decline towards the projection zone of the blue arrow. The trend cancellation level is at 89.37970. Above this red line, the entire bearish trend from May will collapse, and silver is likely to continue rising. As long as this ceiling holds, the structure leans towards a significant price decline in the coming weeks.
