Silver Weekly Chart, 2011-2017 Cycle Degree Review

 

Silver topped out on April, 25, 2011 at the $49.75  Price level. The chances that this was the peak of a diagonal 5th wave terminating at a potential Cycle degree wave III as well.  This wave III in Cycle degree barley exceeded the January 1980 peak of $48.

What followed the 2011 peak sure follows what looks like a 5 wave decline, but so many waves overlap that it only makes sense when I count it as a diagonal set,  of 5 waves down. This all suggests that a Cycle degree zigzag may be in progress and that we eventually will finish off with a “B” wave top in Primary degree.

In a potential big zigzag the last thing I would want to see is that the entire “B” wave rally also ends up with a zigzag.  Sure, we started what looks like a zigzag, but that could be just the leading zigzag to a flat. 3-3-5.  This flat, should not take silver to any new record highs as zigzags can’t exceed the start of wave “A”.

If the 2011-2016 decline was a single completed 3 wave zigzag, then there would be no technical issues that would stop the  “B” wave from traveling to new record highs, by 40% (.382). EWI has also mentioned that in a zigzag the “A” waves tends to be steeper than the “C” wave. I believe alternation can switch this all around, when the “C” wave may end up being steeper.

EWI still believes a depression is coming this time, but I disagree as many of  the major depressions in the past came from wave 2 bases.  I will talk more about this when I review the last 100 years in the DJIA wave pattern.

I track the Gold/Sil ratio as that gives us a clue when Silver stocks become expensive to gold. At present we are sitting at a Gold/Sil ratio of 35.70:1 which is not all that bad at this time.  Now if we hit 20:1 then this silver market could be in big trouble.

Last weeks Market Vane Consensus report showed a 24 month high of 53%, which was matched a few days last week.  This does not suggest any extreme bullish mood regarding silver.  I see this as many seats still left, on this silver bull stagecoach.

The font settings in my editor,  is not allowing to lock in changes, as it seems to always want to revert back to Georgia. I may have to post in Georgia and a 16 font size at this time.