Silver Consolidates After Sharp Holiday ReversalJan 9, 2026

Silver made a blow-off top back in December, during the Christmas and holiday period, near 85, from where we then saw a sharp pullback of around 14–15% in just a few days. After that decline, the market stabilized around 70, and this kind of stabilization and choppy price action is very normal after a fast move higher followed by a sharp reversal lower. The next phase is usually consolidation, so for now we can see a relatively limited range, roughly between 70 and 84.

From an Elliott wave perspective, it looks like silver is pausing for wave four. Wave four can take different forms, it can be a flat, a triangle, or a more complex combination. Based on the most recent substructure, especially on the 4-hour time frame, a triangle looks quite likely, which means we could still be missing a few legs before the market eventually resumes higher.

The first key support area for a triangle is around 70–68, which also matches this week’s opening area and a small gap left behind, making it an interesting near-term support. Below that, a deeper and more important support zone comes in around 69–67. This lower area would matter if we see more liquidation and extended sideways action, and it could later provide a very attractive rebound zone.

Overall, this still looks like a healthy pause within an uptrend, with potential for one more push higher in the first one to two months of 2026. The key invalidation level for this view is 54.43, since the market should not trade back into that area. Even a move closer to the 61.8% retracement near 62.35 would already raise concerns that this is not a wave four of the degree we are tracking. For now, price is still well above those levels, so patience is needed, allowing the market to settle and consolidate before the next directional move, all within the broader bullish trend visible on the daily and weekly charts.

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