Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Silver Update

IMG Auteur
Published : December 04th, 2012
477 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...

 

 

 

 

We’ve been watching the silver market with great interest over the past month or so. My time this morning is quite limited but I wanted to fill you in on a few observations and personal levels I am watching. The question for investors now is whether or not this is just another correction of the recent bounce or if this is a bigger correction emerging, one can really do some damage to the silver price. As I wrote in my pre-weekend update, silver had already satisfied the upside target of the small inverse head and shoulders breakout. I felt that a turn could be imminent and this morning we are seeing it.




As the chart shows, we now have a few scenarios that have come into play.

Because I am confident that the breakout off the inverse head and shoulders is complete, and with today’s massive down day so far, the 50 day moving average comes into play. Silver is, as I write this, just a few cents above the 50 day moving average. If silver is to be rescued it will be with that 50 day acting as support. If silver collapses then we could be on the verge of a bigger decline.

The reason I say that is that the 200 day moving average is now below the up trending channel from the move that started in mid August. should that up-trend channel (bottom channel line) be breached then I have strong confidence that this time, the 200 day will be taken out with conviction which will mean that a larger correction is certainly unfolding.

Elliot Wave counts suggest that 33.80 is key but I’m not so sure this time because as I write this, we’ve already breached that level.

In my view key levels to watch now are $33.21 on the spot market which marks the 50 day moving average and the bottom channel of the up-trend line that has been in place since August. If those are taken out we could see a massive reversal.

However, there is a bright side to all of this. As I have been preaching forever on this blog, my main proxy for silver and base metals “long” has been Tinka Resources. A complete update is coming later today but, I am personally using all weakness in Tinka to load up. Those wanting a background primer for my almost 2 years of coverage on that stock (first recommended at .20 cents) need only click on the Tinka tab in the right sidebar and you can see a history of all my updates. For now, let’s focus on the metal. Today’s drop is not insignificant. There are still massive commercial shorts out against large spec long positions and historically this has always ended badly for the bulls.

I will continue to update accordingly. Please feel free to chime in.

 

 

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
The Deepening Deep State
03:24Jim C.
Kunstler wasn't concerned about 'The Deep State' when he voted for Obama...since Obama's agenda seemed to coincide initially with Kunstler's own. ...
Documents Prove Massive Rigging ...
09 DecThe Recusant
Yes, yes. the PMs are manipulated. Perhaps some bank will have its wrist slapped. Then everything will return to normal. More price fixing and bank...
Silver Demand Ready To Explode
09 DecThe Recusant
Sorry Andy, but I don't believe in Santa anymore either. Believing silver "must" explode is no different than the market "must" implode. I've been ...
Guest Post: How to Trigger a Sil...
09 DecThe Recusant
Well, there you have it. Blatant manipulation and cover up by the CFTC and DOJ. So, what else is new? Let's see what Trump will do to stop this! [s...
Indian demonetization effect: 15...
09 DecJ T.
From reading the comments at the end of the article mentioned above in economictimes.indiatimes, the people who read it, if they actually did, are ...
India Confiscates Gold, Even Jew...
09 DecJ T.
Hopefully the naive, or ignorant, or worse, willfully ignorant, who have swallowed (once again) the MOP's lie (that's the Ministry of Propaganda......
The Rediscovery of Men
07 Decaccording-1
and now bernie has a brand new house. i smelled that the fix was in when he said he was running against filthy hillery. then at the perfect moment...
The Rediscovery of Men
07 Decaccording
i suspect that georgie S and his goons will crash the coin and try to starve our guts and spirits with fears we havnt felt perhaps ever. it will be...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS