Silver is Not Out of the Woods Yet

Though silver prices have rallied, the longer-term trend is pointed lower.

Using Elliott Wave Theory as our guide, silver has been declining in impulse waves and rallying in corrective waves.

Silver may be in a small degree wave ii higher. There are wave relationships and the underside of the purple price channel hovering near $27. We'll likely see some type of a reaction lower should silver make it that high.

Near-term targets to the downside appear in the low 20's with much greater potential.

If silver rallies hard above $27, ignoring $27 like a check engine light on your car, then we will need to consider other alternatives that suggest the correction was a multiple zigzag pattern.