Silver: the latest dip.

Here is the graph of silver prices since the beginning of the current bull market:

 

 

There are several interesting features:

 

1. Silver price advances in waves;

2. After each upwave there is about a month of downdraft in prices;

3. The down draft goes below the 50 Day Moving Average.

 

We shall soon get an answer to the question I posed a few days ago: is the movement of silver exponential? If the movement is still linear then we can expect silver price to bottom at $17.5. If the movement has become exponential then silver hit bottom yesterday. If silver movement is still linear, the graph indicates a bottom at $17.5. One KWN author believes that silver retests its previous breakout price, which would be $18.

 

The other important point is just how high we can expect silver to go in the next upwave. My analysis of the graph indicates $23+.

 

NOTE! I have ignored the point of 21.5 in the beginning of July. If in fact it is a valid point then we may have an exponential increase in prices and the next upward spike may occur in the first days of October between $24 and $25.

 

These are my opinions and do not constitute an investment advice.

 

As you would expect, miners took a hit yesterday. FSM, for example, took a 15% hit.