The new situation is shown below and the question naturally is what are we correcting here? The impulse wave which ran from mid April to early June is either wave 1 of a bigger impulse wave or it is a sub wave of a corrective wave which we call "A" here. Obviously being only wave 1 of 5 in a larger impulse would send silver well above the $21 highs of last year but we do not think that is the case for now. The depth of the current correction will answer that question in due course. I have an idea where this drop may end up but I am sure it is the prelude to higher highs (larger correction or not - just not as great as a mega impulse wave).

From a purely Fibonacci point of view (not the only tool we rely on thankfully), the 50% retracement is at $13.91 - we have seen as low as $14.05 so far. The 38% retrace was taken out at $14.40.

After this correction ends it is one final push up and then into a final multi-month correction phase.

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