Silver had a rough end to October. The Fed held rates on October 29, but two officials voted for a hike, and the odds of a December hike jumped above 80%. US yields pushed toward 5% and the dollar firmed. Then Friday’s sell-off in tech stocks brought margin calls and forced selling across metals, and silver closed below $50 for the first time in about a year. That’s roughly an 18% drop for the month. This morning we see a small bounce back to around $50, so let’s look at where we are in the wave structure.

Silver is coming to the downside, and based on the substructure of this sharp sell-off, wave C of Y could extend even further, closer to the $45–50 area. That was an important support zone back in October 2025, basically a year ago, so it’s the next potential area to watch. We still think that once this final leg down is completed, it could complete the higher-degree counter-trend movement from the highs, as the whole decline appears to be unfolding in seven swings, which makes it an overlapping structure.

If we are correct, more weakness can still follow, because on the 4-hour chart we are tracking a five-wave impulse that is still in progress. So be aware of more weakness after the wave (4) pullback. Short-term resistance is at $52–55.

When we zoom out to the daily chart, we see the market finally coming into some important levels, where a big change in trend may follow in the months ahead, ideally a turn back up into bullish mode.

In the big picture, on a higher-degree monthly pattern, we see a bottom back in 2020, from where the market has been in a strong rally, ideally trading in wave (III) of a five-wave bullish impulse. So this sell-off can be painful in the short term, but it may also be setting up a much better buying opportunity in the months ahead.

This week also brings the US midterm elections on Tuesday and the October jobs report on Friday, so volatility can stay high.

For a detailed view and more analysis like this, you can watch below the recording of our latest live webinar streamed on November 02:

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.