On the chart below you can see the impulsive decline in silver from 22.17 to 19.20. As you can notice, the whole three-dollar move developed in a perfect trend channel. If we look at the wave structure of this decline, we may be interested in the corrective waves 2 and 4. Wave 2 is an expanding flat with an ending diagonal in wave “c”. But the extraordinary part comes in wave 4, which appears to be the rare expanding triangle pattern.
After every impulse, a correction should follow. Although today’s bottom may not be the last one for the week, we have to prepare for a three-wave rally, that should start soon. Wave (2)/B could reach as high as 20.80, before wave (3)/C leads silver below 19.00.