Tuesday, December 7, 2010

Silver Breakout?

Only a very short post tonight to share the above chart and a few words.

Silver has been trading under this overhead resistance for the last 7.5 years (essentially the entire bull market). There have been 3 previous spikes that have risen to the overhead resistance and then heavily retraced. I would want to see a couple of days trading and closes above $30 to confirm, but it's looking likely this is a breakout.

What does this mean for Silver prices? It probably means throw out any short term trading ideas and just hold on for the ride as things could get very volatile. Where does the price stop? All I know is that Silver's fundamentals support much higher prices. This leg higher might not slow down until we're coming close to record highs (around US$50).


Disclosure: Positions held in Gold & Silver. Not investment advice. Do your own research.

1 comment:

  1. Everything breaking out tonight(07/12/2010)! The Bernanke put. Call me conservative but I just can't see it ending well.