Intra-day Silver

One might think that silver has been looking pretty bullish recently as it continues to revisit the upper boundary of a rising linear regression channel, or at the very least that it hasn't been looking very bearish.

But not so fast, let's see what the intra-day Elliott Wave patterns are telling us.

From the recent high at 30.675, price moved down in five waves.  There are two things to note about the five wave move, however.  There is wave overlap, and the price action is contained within converging lines.  Additionally, price made a three-wave corrective rally following the 29.387 low made on Friday morning, of which the A-Wave was another triangle.  Price has not been able to break that 30.675 level, at least yet.  Subsequent to yesterday's rally high, which we are now revisiting, we had another correction.   I can find no way to count any of the move higher off the Friday low as an impulse, so my conclusion is that 30.675 should remain in tact, despite being tested today.
If that turns out to be incorrect, then the larger count on the daily chart will have to be re-evaluated.  Keeping in mind that this was part of a fourth wave rally on the daily time frame, and that we are well within the target area for the retracement, I'm still pretty comfortable with my short position.  The effect of all this net sideways movement will actually work out very well in my favor since my instrument of choice was a long vertical put spread.  The short out of the money option will decay faster than the long option, particularly when the long option is in the money.
We have 30 days until February expiration, so I really only need the selling to happen within the next couple weeks.  I think that's plenty of time.