Tuesday, November 11, 2008

Silver Starting to Roll Over

I've made a lot of money on Silver this year, and I've lost a lot too. so perhaps I'm not the best person to look to for prognostications in this market. but then, I'm not aware of anyone who has consistently called the Silver market correctly.

but in any case we are seeing Silver starting roll over somewhat. surprise, surprise. we should look for good demand in the mid to lower 9s, though there is a possibility of testing the lows below 9. it's hard for me to imagine it going significantly lower than 8.50 but it's hard to tell right now how many weak hands are still grasping a bar or three. plus, as with other commodities, there is still the issue of index fund redemptions, so a renewed liquidity panic would make things very interesting.

I suppose it could go to 8, but whatever level I get verification that this next decline is arrested (if a decline of a significant degree does indeed develop) I'll be a buyer -- a buyer that won't be letting go for quite some time.

if you look at the weekly chart upside down it is easier to visualise a potential topping pattern: