Saturday, January 21, 2012

Silver Jan 20th - speculators coming back?

Friday was a pretty good day for Silver compared to the past several months of the downwards trend.  The crooks at the bullion banks, CME, CFTC, hedge funds, ect.. probably are taking positions on the long side now.  At least until they decide to short and bring the market back down.


Silver is now above the decending bearish trend line and above both short term and mid term moving averages. (20 and 50)  Its trading near the upper bollinger band which may continue for a few more days, then a pullback within the bands possibly late next week. The stochastics are also above the 80 level which shows signs of real strength in the bullish move.

The high on Friday also hit the 161.8 fib level and then pulled back. The fib is drawn from the lows at the start of the bull market to the peak in 2008 which is the 100% level.  Getting over this level would be good for those that are bullish.

Those that were short had to make a decision on Friday to cover which part of the reason for the strong move up.  Another factor is the European debt issue that will become a major issue going forward.  In 2008, Bear Sterns and Lehman Bro's took the market down, this time it may be entire countries.

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