How are you doing guys? Still in? We got the test of the 13,8 are very quickly. Silvers history for overshooting support (long term, that is) made this quite possible. I will look for scaling a bit up again in the 13,8 area, but now there is not much room for further fall if the case should stay intact (in my eyes). An intraday whip sub 13,8 may be ok, but in my mind, silver now has to react back up in a matter of few days. Above 14,10-14,15 within three days or the "overshooting" begins to seem suspicious. The first breakout of the wedge failed to get follow-up, but one could still argue that a "wider" wedge is forming. This last entry is also currently at a loss of about 30% of the first entry's profit, and dangerously close to the amount I wanted to risk prior to a clear continuation (break above 16,2 top)
13.80 is also the 20-Week EMA which has been support thus far in the run. It was also support during the 05-06 rise as well...
Most of the selling across the commodities complex is directly related to December FND and also due to rate cut prepping by the Fed. It is possible that the energy and metals complex is being sent down in order to prepare the markets for a 50BP cut in the FFR. I suspect the metals won't move too much lower from here...
Puru Saxena thinks silver is about to take off as well.. He has had excellent energy and precious metals calls over the last 4 years or so and put his clients in Crude since the beginning of this year. He is one of very few that sees the bigger picture ahead: http://news.goldseek.com/GoldSeek/1196438700.php
4 hour chart indicates a very good buying opportunity, histogram's bullish pattern + price confirm + buy low + the above moving average statement.
Perfect backtest of the breakout at 14 from October. Nobody ever said that it would be easy riding a precious metal bull but for those that can, then the big moves are still on the way. Ya just gotta take some and sit tight for a while. For all of the reckless CBs embarking on new rate cutting campaigns, there will be no doubt for higher demands of precious metals and the cartel will have a very difficult time from capping prices for too much longer...
Silver broke out of the wedge formation to the upside the last couple of hours. One could hope this signals the start of a continuation move. It probably will still be volatile though, so any further plans to scale up the position needs to be very carefully carried out