Silver - "Look out Silver Bulls!"

  1. 635 Posts.
    A post on silver from Silicon Investor.
    Look at the chart and let's debate where silver is heading in the short to medium term.

    Look out Silver Bulls!!!!!
    Just reviewed my long term, weekly charts on silver. The move from NOv. of 2001 was completed with a double top during June- August of 2002. A head and shoulders top has formed with the neckline at 440.

    Look at this chart and you can see that if you draw a horozontal line at 4.40 for the year 2002. that the high of the left shoulder is about 475 in April?, the head is the double top at 520 and the right shoulder is about 465 in the last month. The breakout this week below 440 completes the top and the projection is subtract the breakout of 440 from the high of 520 for a 70 point break which subtracted from the 440 break of the neck line gives us a target of 370, which is the bottom made in 1993.

    Head and shoulders are powerful formations and are most often right. I would not ignore this. We should see a pullback to the neckline and then the move lower. I am also very wary about gold as it seems highly unlikely that silver will move this much lower and gold will hold or go up. I am beginning to believe that Prechter's view of one more low before the big Kahuna. I am inclined to think that silver will test the 1993 lows and move up from there but that gold may not hit its lows. That is just a gut. At any rate in the face of this formation, I can't be positive about silver at all, for now. Little joe

    To:Canuck Dave who wrote (5899)
    From: Little Joe Sunday, Oct 13, 2002 10:58 PM
    Respond to of 5901
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