Friday, March 11, 2011

4 Hour Silver Chart - update

Bulls were able to blast silver through resistance centered near the $35.50 level forcing out the weaker shorts and propelling the market above $36. The volume was tremendous indicating the panic among the shorts and the strong pressure being exerted by the bulls. Once price moved above the $36 level the same persistent seller appeared and stymied the move higher.

However, if bulls can force price through this level early next week and hold it above $36, this market looks as if it wants to run to $40. Just as $30 was the level that thwarted silver for a while back a few weeks ago, so the $36 level is now serving as a similar barrier.

If it goes, so does silver. If it holds, price might well work back down towards $34 once again and perhaps set up a range trade.


at

2 comments:

  1. sierra_hpbtMarch 11, 2011 at 4:10 PM

    thanks Dan.

    ReplyDelete
  2. janromMarch 11, 2011 at 4:21 PM

    with silver in backwardation, I think it is unlikely that sellers will have much silver to deliver and hopeful buyers much silver to receive. Therefor, my bet is that $40/oz is more likely in the next 2-4 weeks than silver for ~ $30/oz.

    ReplyDelete

Note: Only a member of this blog may post a comment.