Market Curiosity: Exploring Markets And Systems

January 12, 2011

Waiting for silver’s correction to end

Filed under: Just Watching — Tags: — Jeff Fitzmyers @ 11:35 am

Yesterday and today, silver tepidly closed on the up trend line from August on medium volume.
+ Price closed above the 5 EMA.
+ The recent dip was on rather massive volume yet only produced a shallow dip (so far).
– Price closed at the upward sloping trend line. Should have blown through it if it was strong.
+ Since broaching $29 on December 1st, silver has closed above $29 22 days, and closed below 6 days. Silver is normally quite volatile. This price action seems to confirm all the reports of strong demand right under the market.

I am expecting at least one more decline. If that is muted, or is reversed quickly, it might be time to get long.

A once in a lifetime event is still coiling in silver:

Based on Eric Sprott’s reported experience getting silver for PSLV:

Frankly, we are concerned about the illiquidity in the physical silver market,” said Eric Sprott, Chief Investment Officer of Sprott Asset Management. “We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver.

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