SINGAPORE: Spot silver may drop to $11.89 per ounce this quarter, as it has broken a support at $15.08.
The support was provided by the 86.4 percent projection level of a downward wave C from $35.36. Based on this projection analysis, the wave C could travel to $11.89.
The bounce from the Dec. 14, 2015 low of $13.60 has been almost reversed.
The reversal signals a continuation of the downtrend from $49.51.
However, the target at $11.89 could only become valid when silver breaks below the support at $13.60, which caused a very decent bounce.
It may trigger another one. A break above $15.08 could signal the development of this bounce towards $17.43.
A drop below $13.60 will confirm not only the target at $11.89, but also a lower target at $9.78 on the monthly chart.
A retracement analysis on the uptrend from the 1993 low of $3.53 to $49.51 reveals a support at $14.38, the 76.4 percent level, which will be broken when silver falls below $13.60.
The next support will be at $9.78.
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