
“This recovery could be limited under the $17 mark… We should not be surprised by price of silver below $15.” It was November 21st , when we made this forecast about silver, titled “Price of Silver: Upside Could Be Limited”. Ten days ago we pointed out, that the wave structure of silver’s recovery seems to be corrective. The chart below shows the situation as it was back then.
Corrections are movements against the larger trend. When the trend resumes, they should be fully retraced. That is the reason why we anticipated lower silver prices, below the $15 mark. Those of you, who are interested in the silver market, already know what happened next. The chart below will visualize it for the rest.
A little relabeling was needed, but the count did not change at all. As expected, silver did not reach $17. It made another swing high at 16.72 and started declining. Shortly after today’s opening the precious metal fell to 14.33, which is well below the 15 dollar mark. The Elliott Wave Principle‘s greatest merit is its ability to predict reversals before it is too late. This may often help you prepare for the next big move, which, in this case, was of more than two dollars to the south. Now, we cannot be sure, if the bottom at 14.33 will be the last one. However, having in mind our big picture outlook, it could be.