Silver EW Chart By Mark

My basic take on silver is as follows: the high at just shy of $50 was a powerful 3rd wave with a blow off. It ran too far and too fast. Following this we may have seen a rapid fourth wave and failed fifth (an ending diagonal) as per the chart. The more commonly held belief, that we are in a 4th wave and awaiting the fifth is possible, but movement since the top seems out of proportion in both size and time. Whichever way I count the waves, I'm expecting further downward movement. $26 has been tested several times and I don't believe it will hold again. Below this is a $22 long term lower trend line which may hold, but I suspect it will fall to touch the second sub-wave within the third as the third wave was extended. My target is around $19.50, sometime around mid-summer 2013.