Elliott wave view in Silver (ticker: XAGUSD) suggests that the sequence from January 8, 2020 high remains incomplete. As such, the metal still has scope to see more downside to reach the 100 – 123.6% Fibonacci extension towards 16.77 – 17.07 area before stronger support is seen. The decline from January 8 high is unfolding as a double three Elliott Wave structure. Down from 18.85 on January 8 high, wave W ended at 17.58 and wave X bounce ended at 18.35.
Silver has since turned lower and broken below wave W a 17.58, suggesting that wave Y has started. Down from 18.35, wave (i) ended at 17.94, and wave (ii) bounce ended at 18.1. Silver then resumed lower in wave (iii) towards 17.42 and wave (iv) bounce ended at 17.53. Finally, the last leg lower wave (v) ended at 17.36 which also completed wave ((a)). Wave ((b)) bounce is in progress to correct cycle from January 27 high (18.35) in the sequence of 3, 7, or 11 swing before the decline resumes. As far as pivot at 18.35 high stays intact, the metal still has scope to extend lower again towards 16.77 – 17.07 area before buyers appear.