Market Curiosity: Exploring Markets And Systems

September 9, 2012

Silver: 4 reasons to be long (update 3, Sep 9)

Filed under: Just Watching — Tags: , — Jeff Fitzmyers @ 11:00 am

August 26
So far price has easily moved past the medium term EMA and only paused at the long term down trend line from April of 2011.

The gold silver ratio just dropped through significant trendline and EMA support.

Adam Hamilton’s Contrary Gold Futures: the gold futures long positions of both large and small speculators just hit a major multi-year low. These traders haven’t been this bearish on gold since soon after the stock panic’s secondary lows, just before gold more than doubled over the subsequent years.

The COT suggests this nascent trend has at least a few weeks to go.

References: Silver And Gold – Long If A Buy Stop Triggers Near Yesterday’s Highs.

Edit: add the SLW:silver ratio too.

Update August 27: A correction to near 30 is normal. Price easily rose trough the medium term EMA (magenta) and only paused at the major down trend line from April 2011. If price really is strong, this dip would be over in a few days and shallow via horizontal and EMA support.

Update 2, August 29: “So far,” price is holding up very well.

Update 3, September 9: So when can we expect a significant correction? I don’t know, but I’m looking for day when price gap opens up rather high. Until then, price has been resting for 1.5 years: big corrections are not needed for a bit, go with the trend. Minor resistance at about 33.50 was easily passed (so far). Edit: A “target” to me only suggests a place to see how price reacts, NOT necessarily a place to exit.

Possibly the short term dip in the SLW:silver ratio is due to SLW hitting it’s 1.5 year old down trend line.

COT suggests price can still rise.

Related:
+ The obvious and GARGANTUAN silver opportunity

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