Thursday, April 21, 2011


Short Term Analysis

This is getting crazy here as resistance lines keep getting taken out to the upside. This means the rate of ascent keeps going higher and higher and yet another weekend closes where the market is bullish on every time frame. The resistance trend line that closed the Thursday and Friday sessions of last week was taken a few times this week and now is showing that it wants to break from this level as support. Anyone whom is shorting here is fighting the trend as there is nothing to state this from stopping its trend at this moment. I see the $50.00 level coming as the lowest area where one maybe successful by trying to guess an intermediate term top, but from what I've learned about technical analysis is that when resistance or support is not found than it is full steam ahead. The $31.42 level I talked so much about was only big resistance on the short term, tiny resistance on the intermediate term and none on the long term and the result is a blast to the next level of $48.36. If we top right now it will end up being a pierce below, but it looks as if it will be tested. This is why I would not want to look for any short positions with virtually every indicator guiding to higher prices including the most important one which is price action. This $50 is going to scary and/or exciting because the probably odds state that we burst even faster and further to $78 or we in fact do top at $50 and it becomes a self fulfilling prophecy. Either way we are only a few percentage points away now from these levels that short term moves are going to be important for the long term now.

Happy Easter. The blog will be updated later on throughout the night and weekend. There is a lot to cover and should presented in mini articles like last week. The market held well above $46.00 today and this train seems to heading towards $50. The blog votes have remained about 2 to 1 on the people thinking "Yes" for $50 silver by the end of the month or the end of next Friday (5 more trading days). Only a seven percent gain would be needed to make it to this level.

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