Silver’s New Trading Range
Posted: Sat May 14, 2011 1:24 pmSilver has followed a repetitive spike, crash, and consolidate pattern during this silver bull market. The bulk of each crash lasted approximately two months, so if this crash follows the same pattern it should bottom sometime in June. Then silver should stage a recovery rally. The recovery rally has tended to be followed by a consolidation period, where silver just grinds sideways. If the crash is the “scare you out” phase, then the consolidation after the recovery rally is the “wear you out” phase. The goal of both of these phases is to recreate the wall of worry necessary to drive the next major rally.
Based on past precedent the new trading range for silver is likely to be from the mid-20s to the recent high right below 50. There’s some support on the chart between 26-30 and this zone also resides underneath the 200-day moving average, so that area would likely prove tough to penetrate to the downside.
http://news.silverseek.com/SilverSeek/1305293931.php
Based on past precedent the new trading range for silver is likely to be from the mid-20s to the recent high right below 50. There’s some support on the chart between 26-30 and this zone also resides underneath the 200-day moving average, so that area would likely prove tough to penetrate to the downside.
http://news.silverseek.com/SilverSeek/1305293931.php