Silver's price action has been highly volatile, experiencing a sharp rally to nearly $120 in January 2026 before a significant correction. Technical analyst Economic Office provided a detailed Elliott Wave analysis on a 12-hour chart, indicating the structure of the ongoing Wave 4 correction has shifted from an expected triangle pattern to a more complex W-X-Y formation.
The breakdown shows Wave W completed the initial drop from the $120 peak to a low near $64. Wave X then brought a recovery bounce toward the $80-$85 zone. The analyst states that Wave Y is now unfolding as the final leg, which could test the previous low or form a higher low before Wave 4 concludes. Despite this change in the correction's structure, the ultimate price objective remains unchanged at $150 for the subsequent Wave 5 impulse move.
Separately, silver demonstrated extreme short-term volatility driven by geopolitical news. The price touched $61 per ounce before a rapid $12 bounce to $73 occurred within hours. This surge was triggered by market hints of a de-escalation in Middle East tensions, as highlighted by analyst Wall Street Mav. The V-shaped reversal was accompanied by increased volume, confirming strong buyer participation.
Mav emphasized that the fundamental driver for silver remains a persistent structural supply deficit, which amounts to several hundred million ounces per year. He argued the sell-off was sentiment-driven and presented a buying opportunity, specifically pointing to silver mining stocks Aya (AYASF) and Silver X (AGXPF) as beneficiaries.
