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
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.