October 19 - 21, 2010

Intra day, silver is bullish and thus the five day remains neutral to slightly positive. More later on

Watch Part Five of Mike Maloney's video series




Silver is off 6% from its highs and most of this is because of USA dollar strength. Oh it is strengthening amongst other currencies and that could mean that silver could see some doom days in the future, because a strong USA dollar. Our GDP numbers and so many indicators will tell us that things are just so peachy fine and that we should all go back to our spending ways. If silver dips to $16.75 per oz again then you will hear that these great economic times are here or maybe the stocks collapse instead. You would know your holdings are worth what they were before. The same is true today when you compare to what they should be today. Many people assume that silver should be over $50 or even in triple digit figures at this time. I think it should be over $175 based on money supply and demand. When I see the pullbacks as I do today with a newer flock of participants investing in the white gold I laugh at the thought this investment will be a terrible one in the next few years.

10/18/2010

The Formula for the volatility is (high-low)/low for a 15 minute time frame and then the average of the last 26 periods. There is 26 periods in a day, which thus makes it the one day moving average of volatility for the time frame. We have a long way to go for the volatility that I am expecting on this market.




The fibonacci is holding very well on the short term time frame for silver. This selling that occurred early in the day is looking to be yet another pull back in this bull market. With a rising five, ten, twenty, fifty and two hundred day moving average all of these sell offs are guilty until proven innocent. The fundamentals for the long term remain exceptionally solid with the oversold conditions that I have mentioned on the longer term charts. This doesn't mean we will not have some further corrective action as it very easily can. For now the path of least resistance is higher as we are now in the tenth straight day where silver has managed to stay above the resistance level that has been mentioned in other videos.





Fibonacci Upside thus far is working well on the very short term charts. Breaking this current level brings a target up to $24.91 which is close to the year to date high of $24.95

ARTICLES


The Long and Short of What's Happening With Silver These Days

Sizzling Silver Offering a Golden Opportunity

Dollar keeps falling as investors await Fed action

Inflation to Make All Americans Billionaires By 2020

Silver Major Price Breakout and Manipulation Timeline

10/13/2010

Silver is approaching $24.00 per ounce and the bull market is staying in tact. When the time is right, i'll let you know when the price correction will come into being, but as of now the trend is higher and shorting this market is thus fighting the trend!














Silver price manipulation: 'public deserves answers'

The Long and Short of What's Happening With Silver These Days

October 12/2010

DAY 6 OF BREAKOUT, October 12/2010



Fibonacci from todays fed meeting is this chart above. Fibonacci is playing well. Because of this we are in a major indecision move on a fed move which can play screwball on the day following and a day or two sometimes. Its current pattern is showing that since the run higher it had a price correction and thus a consolidation of time showing indecision on this move. This is why those fibs level are important. It is bullish. By trading this you can ensure lower stops below the 38.2% when you are at the level on this chart. The risk side is not only commissions and spreads but because of a tight stop loss, the losing trades would outweigh the winning ones. However this can enable a higher winning percentage if stops do not get violated. This can work to massive profits with an original small risk. The Silver daily chart is still in a hold situation because the 5 day has not been violated and the 23.6% can't be tested. Thats why when a reversal happens, $1.00 of the move may come from profit taking this longer rally. Therefore if you play this with a stop below the 38.2% then $23.25 or 24 cents is a stop level. If you play the last support area, it has established at $23.35 and thus stop below the line at 33 or so cents makes it have lower risk. As the market rises, the stops should also. Fibonacci and established recent levels work the best I think. This way when you have those levels you can find another nice number that is lower of that level. When previous levels match the fibonacci then it can even be stronger and thus making it easier to read the market. The longer term charts continue to scream bullishness with the market still in need of developing some support either through time or price.



The path of least resistance remains higher as it has held above the five day moving average during this run higher and the trend line that was violated to the upside last Tuesday has not been a failed move. A failed move in this case would be if it either re-entered the previous trading range it had been in the last couple of months or if it sold off and started an intermediate term bear market. What this is looking to do is maybe make a new range to the upside where the previous resistance line becomes a support line and a new resistance level will become established. It is still early to tell what will happen from the trend line breakout. It has not had an explosive gain as of yet.

INTERESTING ARTICLE I read today says that JP Morgan is predicting that Gold will trade consistently above $1,400 in 2011 and Silver will trade in a range from $21.50 and $22.50. It's funny that it happens to be JP Morgan whom has shorted so much of this precious metal to actually come out and give us this kind of propaganda. We'll wait and see what the future holds, and it'll be interesting to see if JP Morgan will be able to predict the demise of the fiat currency and banking sector.



One of these moves will be a failed move. Either the break of support on this descending triangle or the breakout of resistance. From a failed move usually follows a fast big move in its opposite direction. With the federal reserve speaking today, I doubt a fast move will happen from this pattern, but when the fed kicks off after 2pm EST, the fast moves will follow!

Weekend - October 9 & 10 2010

PHOTOS USED in these videos. Feel free to use these in any non profit presentations

October 6, 2010 DAY 2 OF BREAKOUT

Update 1:42PM (10/08/2010) aka Day four of breakout of trend line. - I have a photo below of the last few hours of trading. The 23.6% level has played out nicely thus far as perfect support. If you have a bounce from this level to the top of todays range, then odds favor a push to the next resistance level, which was the highs from Thursday morning of $23.50. The breakout on this range is to $23.94. The trend remains higher in the early parts of the second stage of this rally. Second stage because we are in day FOUR of this move which has an extremely conservative level of $24.00 as its next target.




Update at 11:30am EST Silver is at $23.27 and is breaking out nice today. The next key resistance levels can be found at $23.26 which is where we are at now. This is the 76.4% level from the 23.50 to 22.50 range. This means that the next levels is the previous resistance of $23.50 and then $24.10 following that. Buyers are still in full control of the market and a big move seems as if is on its way based on the breakout of the trend line.







Update after the close 10/07/2010. Silver rose to $23.50 and then fell a full dollar or four percent from it's highs. This is the biggest price correction that has occurred during this bull market as a level of support has not been established either through price or a time correction that has not happened yet. We need more than this to say that this is a correction on the daily chart. The video below talks about todays actions



Part two of Mike Maloney's video series is out. Click here to watch the video

SILVER RISES TO OVER $23/OZ.


Short Term Chart as of 3:08pm EST the market is at its 30 year high at $23.16 per oz.! The break of the trend line has enormous potentials and its not often a short term chart like the one I have been tracking stay not only bullish but strongly bullish. Not once have I ever had to move that chart to Neutral and its rarely been cautiously bullish. This means that the train is showing no signs of slowing down and the buyers are in control of this market. Shorting silver is fighting the trend or a way to hedge ones bets. Because of this steam it has built up and the energy it is not losing, a move to $32 is now becoming probable either through the correction it needs over some period of time to gain energy or through price where we get a move back to $21.50 and then rally further as an example. Another possibility is a high steam move that gets to $32 with very little price or time corrections like we see now. We are at the point of time where a 10% move would bring silver close to $26 and this market has been historically known for having 10% days both up and down. With that said, is there a reason it can happen now? Considering we have been riding a slow upward trend for seven weeks and have all of a sudden just barely broke this trend line, then the answer can say its possible. Possible and probable however are two different words.

10/05/2010

SILVER IS BREAKING OUT! Huge Up day today.

I have said in the last couple weeks, that a break of this trend line to the upside can give even more added pressure to the upside for the silver price. We have had our breakout today and thus I am expecting the volatility now to increase levels. The volume is increasing and the price is closing in on $23. Because we have closing in on this level, then the next $24.00 target is now in play and should be tested relatively soon. Whether that be today, later this week or next week the probability odds would state this to be the case.

10/02/2010

The video above uses the charts below with some technical analysis. Feel free to use any of these charts in any non profit project of your choice in videos or anything else in that nature. If you need them for profit, please contact me directly through youtube mail or on my email endlessmountain2008(at)yahoo.ca