Tuesday, February 7, 2012

Silver Chart notes

Silver is responding to the "Free Money" environment being maintained by the Fed to keep the US economy limping along as it shot higher when the Dollar dropped lower and fell below the 79 level on the USDX chart.

It is once again knocking on the door of a heretofore very stubborn level of chart resistance that begins at today's high and extends into the region just north of $35. If silver is going to mount a breakout move and start a trend higher, the bulls must beat back the selling that is going to come in at this level. If they do, they have a very good shot at a rather quick move to $40.

Downside support is coming in from dip buyers who are currently attracted to the metal near $33.



Turning to the Dollar chart, note that the price has now decisively broken down below chart support at the 79 level.


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6 comments:

  1. DFRFebruary 7, 2012 at 1:06 PM

    Dan
    you have probably heard this a million times but..I am a new invester to gold and silver and I am so appreciative of your postings and interviews at Kingworld that you provide for FREE.
    that says a lot of the kind of person you are!
    Pretty amazing and thanks again for helping out the little guy.

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  2. boatmanFebruary 7, 2012 at 1:59 PM

    thanks dan

    ReplyDelete
  3. silverwoodFebruary 7, 2012 at 3:05 PM

    Gold will be @ $5000 and the HUI will be range bound between 480 and 600, can you say suppression!

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  4. willydogFebruary 7, 2012 at 3:46 PM

    I don't know Dan. I'm very disappointed in the price action and volume. Once the party is over with equities, I think maybe we'll see some hot money head into gold and silver, but for now - we're at the mercy of the cartel, "allowing" PM's to rise when conditions warrant (but not too much).

    Volume was sickening today. I fear they are setting another bull trap. Rally in dollar? Down she goes... CCI takes a dive? Down she goes. Until the specs rejoin the party like the good old days, the cartel has too much power to control the action. They are going to suck the life out of every last bull, while making a shitload of money at their props desk in the process. F'ing criminals.

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  5. White WolfFebruary 7, 2012 at 4:25 PM

    Dan, the war continues. It is going to continue..

    As a person trying to buy/sell mining entities, and make some cash, this is a very difficult market to manage. However, at some point, the Levy breaks.....

    Carry on Danno, I love your Patriotism, your outlook, your continued service. I certainly am defining this in a altruistic and/or love of service... Keep it up. Certain FBI articles today are certainly bizarro. I mean, just because the truth hurts does not give these people rights that will take advantage of. Fear is no reason to violate the TRUTH. God bless you Danno.

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  6. davecydellFebruary 7, 2012 at 8:39 PM

    Am I "currently attracted to the metal near $33"

    Hell, I have spent the last two months attracted to $29.

    ReplyDelete

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