Update 10:26pm EST - This move is so similar to the one last month when you look at the volume encountered and price action. If thats the case another wave lower might be the case. If that is the case then we may see another wave lower. The counter argument to this move lower is that Gold made a new low on the short term from its 4pm Lows. The $28.50 handle was hit exact just recently for a second time. Gold on the other hand had a 4pm bottom around the 1397 handle and has just hit 1391 when silver hit the $28.50. This means in that time frame the gold to silver ratio is bullish and this could mean the move higher in silver is coming. The Fibonacci from the $18.00 lows of August and the highs of a few hours ago have the 23.6% level at $27.08 on a Linear level and $27.74 on an exponential one. If silver continues to move higher on this level then the gap difference of the two will increase as this shows us the differences better with exponential growth and decline.
Note - The stats for this page is also starting to grow exponential. Thank you all for your great support.
Update 4:09pm EST - WOW! Often times from failed moves brings fasts moves and boy did it ever. 20 Million shares were sold on SLV bringing Silver down $1.00 on endlessmountain informing of the fibonacci announcement and that he is not buying any more bullion for a while. Not like I am buy that much right now and I am kidding that my announcement moved the market lower. However, because the market is lower and it broke the Five day average as well as the 23.6% fibonacci mark and previous resistance it fell big down to the trend line. the 38.2% level is $28.41 on the exponential side and $28.55 on the Linear level. This calculates the lows of $25 and the highs of $30.75. As I am watching the charts now at 4:14 I have seen it go to $28.53. If this level doesn't hold, its getting serious and the shit is hitting the fan in a serious way. Excuse the language, but if this level doesn't hold, i'll have to figure out whats going on.
Update 2:52pm est - On the short term time frame the $30 level was resistance and since then is consolidating over time now showing indecision on this bear market. if it can hold the $29.80 handle for the end of the afternoon session, then a test of the 30.25-30.75 level should be in play. If not and it breaks the support, its the November highs thats the next target.
The video explains most of what I wanted to explain on this current test. What was not mentioned in this video is that I am only planning on liquidating around 2% of my current supply at this level because I do not trust the sellers. This rally has been borderline impressive in my views as I feel that the greater moves higher are on the horizon. You can not create phantom money out of thin air without destroying the currency and that seems to be exactly what is going on. It would not shock me and barely surprise me if we see the $48 handle my the end of the year or even January of 2011. After all, I am still planning on how I will present my year end Silver video where I talk about silver going north of $100 for the end of 2011 into early 2012.