Wednesday, April 12, 2006

Silver Price Prediction

If you look at a 5 or 10 year chart of silver, what the price of silver is doing now is moving almost straight up compared to its movements over the last 5 years. This type of movement in financial markets halts abruptly and a reaction (a rest) to too fast of an upward move sets in.

Since the beginning of the gold bull market, very roughly speaking, gold is up about 100%. In just over about 3 years, silver is about 200%.

The high point silver is now probably putting in could very well be the top of a more upward sloping channel than the channel that it has been in since 2003. The new more upward sloping trendline (bottom of a channel) should be the new low of a reaction that has or should set in shortly in silver, and the low that silver put in in the middle of 2005.

1 comment:

Anonymous said...

Dear Bob:

Do you follow Ted Butler's analysis of silver?

Do you agree with said analyst's findings as to the POS suppression/manipulation scheme that has been going on for at least two to three decades?

If Ted Butler's analysis is believed to be correct, then silver is structurally and strategically sick.

And if this is the case, how can one ignore systemic problems with silver, i.e., that it does not float free and unencumbered on the open market while one continues to apply technical analysis to this commodity?

IOW, it seems to me, technical analysis is completely worthless in the presence of a fixed or rigged market.

(Just trying to learn.)

Thanks. All the best.

Bill Bochynski