Saturday, August 13, 2011

Silver - trend channel is up

Silver has been in a slight upwards channel since the May selloff.  The upper and lower channel lines can be seen before the breakout / runup in late March and into April.

Look for a possible breakout above the upper channel trendline during the 4th quarter of this year. (September - December)  Silver ETF 'long' swing trades and 'Calls' should be profitable during this 'Seasonal' period.

To start the upwards trend, Silver needs to start trading above the short term moving average.  Then look for the 50 dma to cross over (above) the 100 dma.  When this happens, a lot of traders will most likely get into the market looking to ride the trend up for a few weeks/months.

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