Thursday, August 4, 2011

Silver:Revisited

Is There Still Silver In These Hills?




The following chart is part of my initial commentary on July 28, 2011. As you can see my analysis for the termination point of the corrective rally was incorrect as price exceeded my invalidation point of 41.97.




Here is the updated chart through today's close. From the w.iv circle low of 39.13, a small five wave advance where w.v = .382 w{i-iii} at 41.92 took place and is in agreement with the 1.618 RF extension of w.B red. Also note that the bearish reversal that occurred today is also what one wants to see if a top is in... i.e. a swift retracement of w.v in less time than it took to complete.






Additional evidence of a w.(2) crest can be found by looking at the MACD technical study that shows a divergence as noted by the green lines.  This market should remain under selling pressure in the days to come.

Best of Trading






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