Monday, December 13, 2010
$29.67 (or Twenty Nine and Two Thirds area) is the area that Silver stopped its rally and moved sideways. This area is also the 61.8% from the lows of $28.00 and the high of $30.75. The 38.2% was $29.00 and that was the top on Friday. Once again the silver market gapped above a declining five and its been a very profitable play to bet on Silver when its below since July. If there is a pullback I would like to see $29.00 become support which was resistance on Friday as well the 38.2% fibonacci mark. If it breaks through this and can manage to hold above $29.75 then the move to $31.50 and up to the $32 area should be the next move. This has been a long range of gaining 0.6% per day on average and that is what the trend line is. It has been above and below and thus we are in an upward range. We were in a sideways range in the summer and it broke out to the upside. This one will break out to the down side and either correct through time or sell of some portion as a break of the down trend. The break of the up trend means parabolic gains to another level.