Wednesday, May 07, 2008

Good Silver Price Signals

Silver is generating some good price signals:

Besides making what is probably a double bottom to this reaction, the right hand bottom is lower than the left hand bottom. Good, a stronger last shake out of the weak longs hopefully. On top of this, the right hand bottom made a 2b end of downward trend signal. This would apply to the short about 3 week down trend that just happened. The silver price moved above the previous low of the first week of April within 1- 4 days of making a new low.

On top of the double bottom and the 2b, the equal spacing tool indicated an important time period at the beginning of May. It looks like a significant bottom has happened.

2, 3, 4 years from now, 20 dollar silver is going to look ridiculously cheap.

Silver will never go out of style. Go ahead. Click on the Mercedes!

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