Sunday, November 14, 2010



On the short term, we have at least taken out the downtrend line it has been battling with for the day. Those fibonacci variables will change if we make a new low. I expect $25.00 to be the next area where support will be found. It is the fibonacci you can see on the above daily chart from The $18.00-$29.33 level as well as this area being a key resistance level that was touched on three previous occasions as resistance before breaking out. The twenty day moving average is now briefly above the $25.00 level. Very often previous resistance can act as support and fibonacci 38.2% levels get tested in a bull market. This seems like one of those cases. If this level does not hold, then this rally will turn from bullish to neutral. The daily trend is not broken yet like the intermediate term one is and this is the significant level it must hold.

Below is two charts that are inflation adjusted silver charts. They are poised to break to the upside which means by investing in silver today you have great potential to not only protect against inflation with silver, but even thrive as other products become cheaper priced in silver.

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