Wednesday, February 15, 2012

Fibonacci level resistance for Silver

Just to add a quick chart of Silver as a follow up to yesterdays resistance points, I added a Fib retracement from the low created just before the massive run up of $17.84 to the high created in April 2011 of $49.82.  This placed the 50% retracement at $33.83, right where the major resistance has been over the past few weeks.

I know that there are a lot of investors that are tired of waiting for the mining shares to appreciate in value and I'm also in that camp.  Many gurus will say that we will need to hold onto these shares for a few more years before they really start to take off.  I also know that many investors are discouraged as they may have some losses in this sector while other stocks like Apple and the indexes have really appreciated over the past few years.

Some may want to start swing trading the mining stocks, so you will not have to hold onto them for long periods of consolidation and some even on a technical downtrend.  There should be a decent sized rally before May of this year, that would be the best time to exit some positions. The re-entry may be in the late summer months when both Gold and Silver are flat to down.

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