There is more potential for downside from a technical point of view not only for AUMN but the whole pm sector in the short term based on yesterday's action. This is really painful for all us long term holders but this pattern once completed will set us up nice entry points going forward if it does play out this way.

Using ABC's and volumes at critical swing points we start at Feb 2, 2012 price of 10.60 from there we dropped to 6.60 on March 14th with volume of 261.6k for a 4 point move down completing the a to b move. From March 14th to March 27 we complete the b to c move back up to the high of 8.77. So the next c to d move from high of 8.77 should equal the a to b leg of 4 or target of 4.77. In order to confirm this the volume at the 6.60 b point should be more than 261.6k at the first test. On 4/16 we break 6.60 and close below 6.60 on 161k volume. So this is a false break. The new volume to crack at that level is now 161k. On 4/19 we break the floor on 171k to 6.29. On 4/23 we reach a low of 5.95 with volume of 208K. Yesterday we break 5.95 with 211k volume confirming more downside.

So that is one abc pattern to consider.

How about another abc pattern within an abc pattern. March 27 high of 8.77 being the a point and April 23 b point being 5.95 equaling an a to b move of 2.82. From April 23 we make a b to c move of 5.95 to 7.53 on May 1st. So the c to d move should equal 7.53- 2.82 or target of 4.71.

The good news being the overall volume from the top of 10.60 to the lows of yesterday have been decreasing all the way down compared to the much heavier volumes we saw from the December 2011 lows to January highs.

My point being that yes we are in a tremendous bull market for precious metals but all bull markets have their pullbacks and being an election year things can be pushed further then one would expect. Could this be the pm's 1975 pullback? If so the price projections of 4.77 and 4.71 could be excellent places to add to your positions.