Bow Tie Chart Formation?

[johnbrickner]

I dont have a chart in front of me I can show this but, it appears to me the 7, 30, and 200 day moving averages on silver are all converging to the same place. That being the current price of silver. They call it a "bow tie" as the 3 lines come together then split back apart after the convergence showing a bow tie like image. As I understand it, the price after the convergence continues shaprly the current directions of the market. That being the direction of the 200 dma. Which appears rather flat to me.

Any chartanistas care to complete/comment on the details of what I am seeing here?

[68Camaro]

Regardless of charts, I'm convinced TPTB will keep the price down as long as it is useful to them, and the physical demand doesn't overwhelm their abilities. They make money off the price manipulation, and they like to see the price at a place where it balances right for their game. Something external will have to overwhelm their current position before the price moves much higher again, and that thing will have to be unusual.

[beauanderos]

I'm fine with them keeping the prices low. The longer they do it, the quicker we run out of physical ... they're keeping the game affordable for the small players ... the big boys have to buy gold.

[JerrySpringer]

Sort of tangential to this post, but thought it was interesting to make note. I was listening to Bob Brinker this weekend and two separate callers called in about gold and silver. Bob was down on gold and off the bat scrutinized caller #1 about how much gold they wanted to own and that he did own any gold. Caller #2 asked about silver. Bob was congenial and made note that silver is an industrial metal and had some market values over that of gold. Hmmmmmm. Of course Bob stated the ETFs for gold and silver were the play to use if you wanted ownership. Still waiting for someone to call in and ask about copper pennies.

[68Camaro]

Don't know Bob brinker

[coppertone]

I'm fine with them keeping the prices low. The longer they do it, the quicker we run out of physical ... they're keeping the game affordable for the small players ... the big boys have to buy gold.

Although we all like to see the value of our existing holdings go up, I'm still a buyer and from that point of view, the cheaper the better. Once the price starts to rise my buying days may be over.

[Hawkeye]

Maybe this is the wrong approach to take, but I've almost stopped looking at the charts. I buy what I can when I can and will continue to do so until I can no longer afford it.

[OtusLotus]

I think that TPTB manipulate the crap out of silver. Actually, they manipulate the crap out of everything... as long as they make money.. and at any cost!

They really don't care about anything longer than their investment time frame.

I also used to think that the charts meant everything! Now, I only believe that what they show is in the eye of the beholder.

[johnbrickner]

OK, looks like the answer is now on the chart. Thanks for all your answers and insight leading into this downturn.

[68Camaro]

I was formerly of different opinion (and I think the past was different) but I will no longer make decision on short-term technicals. I watch them out of interest, but no decisions based on them.

I do believe there remains some validity in long-term technicals. But that is only of minimal help, and only supports my long-term views anyway. And, to be honest, if the longer-term technicals were violated somehow, I would start questioning even them.