by Clive Maund, Silver Seek:

It now looks like silver has completed a classic 3-wave correction from its May highs, following its strong advance in the Spring. On its latest 6-month chart we can see that it appears to be conforming to a classic Elliott wave pattern which consists of 5 waves up in the direction of the primary trend, as numbered, followed by a 3-wave correction or reaction that once complete is followed by another series of up waves.

The correction phase is considered to be complete or very close to complete – while it could react back further short-term towards the support level shown in the vicinity of the 200-day moving average which would not cause any technical damage, the overall pattern is strong and given that we will soon enter a seasonally favorable time of year for the Precious Metals, there is a good chance that it won’t react back much further, if at all.