Wednesday, August 3, 2011
INTERESTING VOLUME TODAY:
9:30:00 to 9:30:59 volume 2.7 million. The first minute is common to have this take place and this is most likely the highest first minute volume in a while.
9:53:00 to 9:53:59 volume 2.3 million. The market shot up a full percentage point which is common for a move of that nature to have big volume. This is big money taking many of the offers very fast and taking as many limit orders available. It followed with diminishing volume and higher prices
10:54:00 to 10:54:59 volume 1.1 million. With this one minute twelve cent drop and finishing with a six minute 0.5% retracement as a bottom this again shows us big buyers. Market stabilized after this.
15:42:00 to 15:42:59 volume 2.6 million. Move this minute was a total of four cents and a tenth of one percent and a red candle. Not so large and the movements of the chart at this time frame was in a neutral not so volatile range.
15:51:00 to 15:51:59 volume 2.6 million. The volume with the previous one was a match and being the end of the day you have another match. However, this one trumped the previous one by a penny and had a five cent down swing in the middle of a price correction through price on the downside. It is obvious the big money got out and these levels or there was the heavy buying. This day was the highest volume since 05.17.2011 and a breakout like this on heavy volume is usually a good sign for the bulls. More coming later after 8pm Eastern Time.
This chart shows the correction very well and the momentum gaining strength along the way. I said earlier in a video that the market is not bearish for a reason and that is because it really needs to be above $43.00 for me to call this market a bull market. It's neutral in the last few months and any long term chart like this is bullish and this one has been since 2004 with one year being cautious and a short time becoming neutral at least waiting for the dead cat bounce which obviously occurred. This was when it pierced through the eighteen period average of lows by a decent chunk. Since then it has been very bullish and the move to the upper band this retracement shows a little bit of time correction on this chart. Again, it is not much of a time correction and sometimes all markets need (or get) are these tiny corrections. It's not uncommon for them to just go and the setup of these charts picks up the smaller corrections very well in my opinion.
Just like the daily chart had a look where the fibonacci levels where at the higher end of the chart because it came off of heavy selling we see the opposite on this chart as it is coming from heavy buying. These lines will re adjust itself over the next three days starting tomorrow as it removes old data from the automated counting. The market is a little over extended and therefore the fibonacci marks are enlisted below and they will stay this way until silver makes a new high breaking $42.03. I will explain what each one means
85.4% = $40.54 -> This percentage level is the level it needs to hold for the silver market to be super premium or for a level that gives us a small or tiny correction. If a bounce comes from here and it approaches the new highs, it usually is a good to go for another leg higher. This level co-insides with the upside fibonacci from mentioned on youtube on Tuesday night.
76.4% = $39.67 -> The 76.4% level means it has retraced 23.6% down or held 76.4% of the move and this is where it is very bullish but not super premium. Instead of a tiny correction you will receive a fair correction and this mark of the thirty-nine level is a massive long-term fibonacci mark on many time frames.
61.8% = $38.30 -> This is where it needs to hold to keep the market in a bullish form as this is the main significant fibonacci mark one would be looking for. A decent size retracement has to come to get here and it does not have to hold to keep up the momentum, but concerns arise when this is not held for the market to go neutral or bearish. This level co-insides with the $38.11 fibonacci mark and the previous major resistance at this level. It is very bullish to find support at resistance and a move here would make me bullish at least on the short-term.
38.2% = $35.85 -> This is the "Must Hold" level for the rally not be a failure that occurred starting from the July lows. There is a big gap from the $38.30 and $35.85 level and although I would expect 50% to be the support resistance line in between it is the range for where the market is neutral. I don't expect it to come from here to this line, but you never know these days.