Friday, July 15, 2011
We will make a higher low at $37.89 today if we can take out the new highs and keep the pattern of higher highs and higher lows in tact that we have just begun. If we are looking for a direction to where a higher high MAY occur then I will put it at the top part of this trend line and if this happens soon by Monday or early Tuesday of next week I will target a hair above $40.00 per ounce. I also put the word may in cap locks because all I am trying to do when pick out possible support and resistance lines is finding the targets that have a better than normal chance of being such a degree. By understanding the psychology that if resistance is not that and moves higher than volatility goes higher and the next levels of resistance now get stuck with the word "MAY". Again if you use the psychology of failure to have a test then you can start to think of reversal trends or failed moves. Therefore if this line is not tested then I will consider this to either need some more time to correct or that of being a failed move which is pretty much the same thing. I am not on the bear camp yet, but I am losing confidence in that I am less pessimistic of even having a $35.00 test with the great job silver is holding above the $38.00 area.