Last analysis expected upwards movement, but required a trend channel breach of the channel on the hourly chart before confidence could be had in a trend change. We have the breach now and a trend change confirmed, but price moved lower first.

This is exactly why I use trend channels; they are an integral part of Elliott wave analysis.

The wave count is mostly the same. A target can now be calculated for upwards movement to end.

Click on the charts below to enlarge.

SILVER Elliott Wave Chart Daily 2013

A downwards zigzag is unfolding at primary wave degree. Within the zigzag intermediate wave (A) is complete. Intermediate wave (B) is an incomplete zigzag.

Within minor wave B the structure may be an almost complete zigzag, or this may only be minute wave a of a flat or double for minor wave B.

A parallel channel drawn about minor wave B is now clearly breached by upwards movement on the hourly chart, with an overshoot here on the daily chart. This channel breach indicates that minor wave B is over and now minor wave C is underway.

At 28.121 minor wave C would reach equality with minor wave A.

Within minor wave C no second wave correction may move beyond the start of the first wave. This wave count is invalidated with movement below 21.216.

SILVER Elliott Wave Chart Hourly 2013

Within minor wave B minute wave c is just 0.11 short of 1.618 the length of minute wave a.

Within minor wave C minute wave i is probably complete. Minute wave ii may be complete or it may continue further as a flat correction. If it moves lower then the target for minute wave iii must move correspondingly lower also.

At 26.09 minute wave iii would reach 1.618 the length of minute wave i.

Minute wave ii may not move beyond the start of minute wave i. This wave count is invalidated with movement below 21.216.