Silver extends rout after 40% drop as metals face risk-off pressure

Silver made a very sharp decline and dropped more than 40% from the all time highs back in January. This is something we were concerned about, as a higher degree retracement was always somehow expected after the massive move of more than 300% from the April 2025 swing lows. Looking at the smaller 4 hour time frame, first decline clearly looks impulsive, which supports the idea that this whole move down from ATH is not finished yet, and that big wave four is underway. In fact, we counted perfect three waves up in B wave, which stopped at our danger zone with 92-100 resistance, from where market is now making an aggressive turn lower, likely falling in the third leg of C, which already moved into $60 area, but subdivision suggests there is room even for 50USD. So after current wave four pullback, which is now back at 74-75 resistance area, beware of another leg down within 5th wave of C.