Although silver has broken thru the long term downtrend line recently, I believe we will see one more drop in prices before the bull comes back. If this were the real deal so to speak we would have moved higher last week (at least into the $16's). Jim
That takes some balls to double down, well depending how much. I'm still not touching it with a stick. I rebought SLW @ 10.90 earlier in Jan, and wanted to buy puts on SLV @15.00+ ( didn't do it ) last week I'm not too familiar with options trading yet, but would've been in the money at the moment. I think ultimately, it will head down, but China and the US both online will show where it'll go tomorrow. With some of my other holdings i'm hurting pretty bad, but what can you do. I can't take it out cause of tax issues. Not selling or buying right now.. but building up more cash only buying bits here and there.
Isn't the handle supposed to form in the top half of the pattern? We are clearly in the bottom half, and the 'cup' seems more like a 'mug', which would seem more fitting considering the average silver investor :lol:
I was talking about a short term cup and handle, not going back 30 years or whatever it is. Look at the chart in my link. Go back to late Oct 2015 till now. Cup forming no handle yet. FWIW: I actually think we are going a bit lower. Not that it matters much, but the right side of the cup didn't go exactly high enough in my opinion. Plus the bottom of the cup has the small peaks and valleys instead of a more "smooth" look to it. Thus, I think we will re-visit recent lows before any take off, which I do think will happen this year some time. http://stockcharts.com/h-sc/ui?s=$SILVER Jim
Just saw the G/S ratio hit 80 on Kitco. I think we are gonna have another drop before lift off. Gold did great today silver just sort of sat there. We won't get another COT report till next Monday because of this week's Monday holiday. Should be interesting to see what happens. I wonder if Leon is still holding on? Jim
I can't argue with that. Logically it looks bullish for silver perhaps but my gut tells me otherwise. I would like to see silver go up and it will eventually I am sure. Jim
This market surely is designed to scare out investors. That might work for the ETF folks alright but a real stacker is not impressed by this up/down. Makes for great buying opportunity.
The gold juniors ETF GDXJ was up 7.45% while the gold price only rose 2% - loving the extra gains in the ETF
I am bullish on silver, but I'm not convinced this is a cup and handle formation. Cup and handle is supposed to be a formation inside a bullish trend, but this is at a market bottom. The handle retracement is also supposed to be a bit deeper and longer than what is currently showing. If the cup was about 3 months then I'd expect the handle to be atleast 2-3 weeks and be more like a 30-50% retracement. To me this just looks like an exhausted bear market that is lethargically trying to break out of the downtrend. It is lagging, but it should take the lead from golds breakout and then play a game of catch up. For now though I think Silver would have remained pretty lifeless if not for the inspiration its getting from gold.
Today's released weekly silver future report: Swap dealer: LONG SHORT 25,391 51,341 That is NET SHORT of 25,950 contracts! considering each contract has 5,000 oz and US$15 per oz, this is about US$1.95B bet Banksters are making against silver.
Here are the gold and silver COT reports. I thought they didn't release them on Friday when there was a Fed holiday during the week- maybe I dreamt that? Looking at this week's numbers I say NO WAY is it rocket time yet. I am bullish as anyone but I still think one more drop before lift off. Maybe just below $14 or lower, who knows? Wouldn't be a bad thing, better buying opportunity. http://news.goldseek.com/COT/1455914187.php Jim
Yes the handle should be about 3 weeks long. I'm still holding out that this will be a 10% rally from where we end up once the handle forms. March is funny.
You never know, it could be one of the lesser known charting events about to take place. It is called " The cup with weakened handle" formation. Also known as the "Hot lap after Hairline crack".....( it is where the handle falls off and you end up with hot tea on your private parts.) Very rare but very dangerous.
