Silver, in the monthly frame, is in the process of correcting the prior advance to the April 2011 peak of 49.82. This correction will ultimately amount to a partial retracement of the advance. Since the peak, prices have traced out an impulsive sequence down, that remains in its late stages.

The overall decline so far, could be still-developing Primary wave A, which is only initial part of a three-wave corrective sequence of one larger degree, that is not yet complete.

Silver’s current bear market :

After completing an impulsive sequence of the primary degree five waves up in April 2011, Silver has been retracing in intermediate degree five waves down – as a primary degree wave A.

As a bearish alternative, wave (5) of the wave A could be extended through the level of 7.00 where wave (5) equals 0.618 times the length of leading diagonal wave (1).

After an impulsive five-wave sequence up of the cycle degree in April 2011 , Silver is likely to correct in a three-waves sequence(or a variation).

An overview on the ongoing Silver’s bear market :

The ongoing five-wave sequence down from the peak in 49.82 , which up here has lasted 46 month, may be just as an initial subsequent of the great correction of the same cycle degree. It could be considered as the wave A of the primary degree.

A ratio-explanation on subsequents of the A(circled) :

The wave (1) is larger than the wave (3), and in a five-waves sequence, third wave is never the shortest wave; hence, the ultimate target for low of the wave (5) could be utmost 4.40.

However, A possible fibonacci target for the wave (5) of A(circled), could be around the 7.00 level, where be established the 0.618 ratio with the waves (1).