Silver Weekly Chart 2004 to Present

Let's take a long term look at silver.  Silver continues to move down thru the purple falling wedge. Interestingly, the apex of the wedge would correspond to a test of the 20 support level and time-wise would be late 2013. For the move since last summer and Fall 2011, lower lows in prices are occurring with the RSI, stochastics and money flow weak and bleak wanting to see even lower prices. The MACD line and histogram, however, are positively diverged and want to see silver bouce potentially moving back up to print at the top rail of that falling wedge. Then the trek down will likely begin again with price moving down into the apex of the falling wedge over the next year.

The chart shows the first large wave ending in 2008, then the third wave up into the 2011 top. Once the falling wedge takes shape, it appears that the final wave five will want to occur from 2013 or 2014 forward. That move should be in concert with the hyperinflation coming in 2014-2018 due to all the Fed easing. The wave five should be steeper in nature and easily pierce up thru the 50 high from 2011, but, silver long holders will have to wait a couple-few years to see this play out. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.