Tuesday, October 2, 2012

Silver Update: How I'm Playing Silver

INTERMEDIATE TREND BEARISH


IMO, the most recent rally in silver is mature, if not already complete. There is no secret to the fact that many larger players are net short of this market and manipulate price. I believe the powers to be will not let price significantly go against their positions and price suppression is likely. 

A few days back I detailed how market participants break nodes (see YM post for details). A similar set up may be on the horizon as juicy stops lie just below 2615. 

While the price structure seems to imply that the overall long term up-trend in remains intact, when I evaluate this chart pattern from 2615 lows, there is no high percentage way to label the move up as a new impulse 5th wave that would eventually make new highs.  Therefore, it's prudent to say that this market will spend more time consolidating it's gains before retesting the 4982 top. 

Best of Trading


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