Monday, October 31, 2011
This month seen a gain for the silver market as the pattern is now that of lower highs and lows on the monthly chart. Actually it is lower high and lower lower as it should be singular. Only one lower high and low occurred thus far.
It seems that one of two likely events are bound to happen and the first one is continued selling that will most likely test below $25.00 per ounce. This most likely cause a large disconnect with the paper and physical market.
Another scenario is the market finds a clear break above the $44 resistance mark and then not only works back to the $50 level, but goes wild making new highs.
The $50 level has been tested a few times as it was a test in 1980 and twice on the daily chart here in 2011. The more often resistance the more often it will take those levels out.
You can say all you want about the Hunt Brothers and the 1980 price doesn't matter because it was phony and it wasn't real. Yes it was real and it wasn't because of the Hunts that it went to $50.00.
You could say today's market and yesterdays and all the days markets over the last forty plus years are phony, because it is traded with margins and paper contract.
The currency is also phony!