Silver, like gold, has nicely been following its projections, making new lows in the middle of 2013 as opposed to "early next year"!
So where is it going now? Further down!
Looking at the big picture, and I know we are almost half way through the year we can see that silver found support with last years (2013) low on Q123ML. This would have sufficed as a minimum correction, however I have put in Q234 (faint) and prices have broken below its MLL, which is not a good sign, indicating weakness and also the smaller scale wave formation confirms this weakness as discussed in the quarterly update.
This correction (Q4) should not drop below the current yearly channel (bold black lines) so could go as low as $8.
I have added Support and resistance levels which are smaller scale where bounces are expected, however the yearly support stands at 5.25 and 7.80, and resistance at 30.12 and 50.70.
For those that are interested I have included the bull market and bear market as follows;
1971 low to 1980 high with a 3137% rise to 41.50 in 9 years.
To its 1991 low of 3.505 it retraced 91% of its value in 11 years.
Then to its 2011 high of 49.82, it gained 1321% in 20 years.
So far it has lost 63% in 2 years.
In gold we have had a 9 year bull market, followed by a 19 year bear market followed by a 12 year bull market and are currently in the 3rd year of the bear market so there clearly is no direct correlation of their cycles from this little data!