08/24/2010

Update 4pm EST - The volume really dried up in the afternoon, therefore it was a low volume light pullback. In fact the volume dried up so much that it only traded at 10.3 Million shares which is lower than the July 27 11 Million volume. It was still high volume for the day, but despite crushing the first hour of the day, it never held on. What I would like to see is a greater spike in volume this week that moves the price higher testing some newer resistance levels and pullbacks on lighter volume. If we see this, then we may have a nice bull market for a few weeks and maybe several.




CHART UPDATE: Volume is Huge Today! While we are seeing the Dow once again go below 10,000 for a brief moment, Silver is going higher on massive volume. Because this volume is really large, this is a rally I would consider to take seriously. Larger volume can often spur the start or end of a rally/sell off. Because this happened at the lower end of this range, this is one that I would consider to have some validity to it that could trigger a nice intermediate term bull market that may last a few weeks that can get us past the May highs.



The Volume at 10:30am is crushing all other days in the last month or so and is going to test its previous high volume days. SLV had 18.8 million shares traded on July 1, 2010. The 21 million share volume mark was its range back in May when it set its highs and lows for this current range. Often in the summer the volume can be very low and because we are ending the month, the volume should pick up and with that, this brings volatility that can enter into the market.


This is the technical indicator I was talking about on the weekend. This is the percentage gain thus far from the 50 day low. The $17.33 level will remain the 50 day low for quite some time (pending a new breakdown) and like any other technical indicator, take it for what it is. On a technical level if you are looking for a breakout, it would be $18.60 that you would want to see it take out. If the volume keeps spiking, then a test past $19.00 would not a be a surprise where we maybe able to even test the 2008 nominal highs




CHART FROM Kitco

We can see this chart and find the following fibonacci levels with a Low of $17.76 and a high of $18.48 the difference is 72 cents, therefore

23.6 = $18.31
38.2 = $18.205
61.8 = $18.035
161.8 = $18.925

If we take the 23.6% and multiply it by 61.8% we get a number of 14.58%. Whats interesting is this percentage retracement of 72 cents is ten and a half cents or a move to $18.38 from it's highs. As of 12:56 it has went to that level as a low and is stabilizing nicely at the $18.40 area. The sellers are not showing much aggression what so ever. You can also see the fibonacci holding well when looking at the Finviz Five Minute Candle Chart. For now the 161.8% is using these highs and lows and any break to new highs, the fibonacci's would need to be readjusted.
The previous low earlier today around 10AM was $18.17. With a high of $18.48 this gives us a difference of 31 cents. This gives a 161 target at $18.67 and a 38.2 target at $18.36. Therefore the 38.2 has been support and if we breakout then $18.67 is the next spot its going to. If it breaks that level then its the $18.92 marks the next projected level.


ARTICLES

David Skarica speaks with The Gold Report
Buying Silver offers an "elaborate play" on the likely money inflation ahead...

Why Jim Rogers likes silver so much
If you're an avid reader of financial columns or watch financial television, you've probably heard of Jim Rogers. Jim is one of the world's most successful investors. When he talks, it's worth listening. A small country down boy from Alabama, Rogers teamed up with another successful investor, George Soros and started the Quantum Fund in 1970...

VIDEO - David Morgan
David states silver will suffer in the sell off in stocks, where Gold will not...

Talk about silver manipulation...
I've been squinting at the calendar for the last couple of weeks, eying26 August when options expire. The manipulators like to engage otherspeculators and dealers who also have an interest in selling silver andgold down. James Turk captured the dynamic in the article atwww.fgmr.com/manipulating-the-silver-market.html...

Manipulating the Silver Market
If someone were manipulating the silver market, you would see exactly what has actually occurred in silver over the past several days.
To manipulate the price you would use your buying power and accumulate long positions until you force silver above resistance in the high $18.40s and thereby trigger all the buy-stops sitting there, including the one we placed. You would then sell your long positions into those buy-stops and keep selling until (1) you became short and (2) your selling drove prices lower...