Silver has formed a (temporary?) bottom, and looks now headed towards $40-$41. First resistance will be the 38.20% fibonacci retracement level as well as the 50 days Moving Average, which are located near $39. (see second chart below) Next resistance will be found around $41, which is the 50% Fibonacci retracement level and  a Fibonacci Fan … Continue reading “Silver and Miners- Whats Next?”

Most mainstream pundits and reporters have assumed that it was speculative buying that caused Silver to go parabolic. After all, its always the dumb money or the public that gets in at the very end. However, in futures markets, parabolic moves are often the result of short squeezes. This is exactly what happened in Silver. … Continue reading “Short Covering not Speculative Buying Led to Silver’s Parabolic Rise”

Silver’s destiny with its 200-day moving average appears to be sealed this week as a brief bounce earlier in the week failed at the 50-day moving average.  From peak to trough so far this correction has run about 35%, which is still less than the 37% correction silver underwent from its parabolic peak in 2006. … Continue reading “Silver’s New Trading Range”

The volatility in silver is something that a lot of people can’t handle. When I first invested in silver, I was focused on hour-to-hour and day-to-day movements.  As such, the volatility in silver was the cause of a ton of stress, even if I traded the moves well. Now, with a little more experience, I am … Continue reading “How Low Can Silver Go?”

By Murray Dawes 05/12/11 Last night I lay back on my couch and had a couple of glasses of red, while reading an article from 1980 about the Hunt brothers and the events that surrounded the last spike in Silver to $50. I found the article while surfing the web for financial news so I … Continue reading “A 1980 copy of Playboy Predicts the Future for Silver”

  Yesterday, silver experienced its biggest one-day dollar drop in 3 decades. In recent weeks, I’ve been warning that the downside risks in silver were huge, that silver rose too far, too fast, and that there was a frenzy developing in silver. I publicly stated I was lightening up above $46 dollars and that a minimum … Continue reading “Understanding the Short-Term Top in Silver”

Gold was not as overbought as Silver and didn’t enjoy the hot-money flows that Silver, Oil and equities did. The price action shows support at $1425-$1450. The previous breakout point was about $1435. The 300-day MA (long-term support) is at $1297 and rising. The 200-day MA is at $1356 and rising. We should also note … Continue reading “Where is Support for Gold & Silver?”

Silver attempted to take out 50 on Monday of this week and instead had a big reversal day as it temporarily ran out of gas.  Then after testing 45 the following day silver has moved higher after the Bernanke press conference and is once again approaching 50.  For the very short term silver appears to … Continue reading “Silver: Runaway Move, Correction, Or Crash?”

This essay will attempt to address the question of whether or not silver prices are in a bubble, or possibly may be turning into a bubble and if so what trading strategies may be suited to the situation. This article will hopefully provide another string to the readers bow in attempting to identify bubbles and being able to protect one’s portfolio and even potentially profit from them. For the record we feel it is prudent to state our view upfront, we do not think silver is in a bubble at this point in time. However we think that it is likely that it will become a bubble in the future, but we cannot say when or at what price.

Silver is in a structural bull market and will see significantly higher prices in the coming years. However, now is not the time to be buying. The market has spiked and a retracement is coming. Sentimentrader.com’s public opinion as of last week was over 90% bulls. The daily sentiment index as of last week was … Continue reading “Downside Targets for Silver”