The daily chart of Silver futures is closing with a wedge pattern which typically ends with the price either breaking to the upside or to the downside.
The upper trendline is in a decent from the high of $49.82 and touches the highs produced in late August 2011. A few weeks ago in late Feb, Silver almost had a technical breakout above this trend line until the criminals at the bullion banks stepped in and drove the price down.
The lower trendline starts at the low produced in late Dec 2011 at $26.14 and touches the recent lows that were produced in early March. Can Silver continue to trade in a narrow range? Yes,,, until?
But with this type of pattern, the investment (whatever it is) will usually break one way, either up or down. I know that everyone reading this hopes that it breaks towards the upside. I also know that there are a lot of people that are 'stuck' in their Silver positions (either paper bullion or mining shares) that want to exit and get their capital back. Those factors will present a bit of resistance on the way up if it should break that way.
The $37.60 area may be the next major resistance level on the upside, the 61.8% fibonacci level.
The lower trendline starts at the low produced in late Dec 2011 at $26.14 and touches the recent lows that were produced in early March. Can Silver continue to trade in a narrow range? Yes,,, until?
But with this type of pattern, the investment (whatever it is) will usually break one way, either up or down. I know that everyone reading this hopes that it breaks towards the upside. I also know that there are a lot of people that are 'stuck' in their Silver positions (either paper bullion or mining shares) that want to exit and get their capital back. Those factors will present a bit of resistance on the way up if it should break that way.
The $37.60 area may be the next major resistance level on the upside, the 61.8% fibonacci level.
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