Thursday, March 24, 2011

03.24.2011

Silver breaks $38 before it falls a dollar




Update 12:00am EDT

In the video I stated this is a battle between the five and one day average. On the short term the path of the least resistance is definitely higher because it is holding with higher highs and making an ascending triangle with an uptrend line the last few hours and the one day average as resistance. The two levels given out that made the highs and lows today have not been taken out and that means fibonacci remains 37 and 67 cents on the $37 dollar handle and normally what happens on a breakout would be a move to the $37.67 level where it can try to find some support either by correction through time within' the fibonacci level or come back to the key support which is where we are now at around $37.45. Then on a breakout after that then I would expect a test of the previous high earlier today above thirty-eight and because of the current trend a move towards $40 for another leg higher would be expected as the trend is your friend. However, on the down side if this trend breaks the support is $37.37 and if this gives in the test is the previous low and breaking that is is both the five day moving average and then the $36.00 area.




The day ended with gold and silver having a similar down day of around one half percent. The retracement gold had today sent its price action to the five day moving average whereas the silver market went in between the one and five day average shown on this chart. Where we go from here is anyones guess and if we go lower on this I would peg the five day average as support as well as the previous resistance around $36.50.

2 comments:

  1. I'd like to thankyou for this blog. I check it daily and am sure it takes alot of your time. I dont often see coments , so just wanted to give you a thumbs up for what you do here !!

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  2. Your comments are insightful, I have been learning a lot since finding your blog a month back, I had already been investing in silver, but I really appreciate your insight. Thanks.

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