Sunday, January 16, 2011
The question is, how low will it go? Based on previous lows, the next support levels are:
Lower Bollinger band: 1353
100 day moving average: 1344
Nov 17 low: 1331
Oct 5th low: 1313
200 day moving average: 1272 (not shown on chart)
Keep an eye on the market next week as Gold may see a bottom for the short term. One of the hardest things to do is to time the market and buy at the bottom or sell at the top. (For swing traders/futures/options). Professional traders are most likely accumulating positions on the way down and on the way back up looking to sell during the next break high above the Dec 7th 1432 an ounce.
As with Gold, this is another buying opportunity for those that believe that Silver is headed higher. Keep an eye on it this coming week for a potential near term bottom.