"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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Silver back to knocking on the door of chart resistance again
This is a rather remarkable price chart and what can only be called remarkable price action on display. As you all know by now, silver was absolutely obliterated yesterday resulting in the total erasure of the huge breakout rally from Tuesday. Such occurrences are very uncommon from a purely technical analysis perspective. More often than not, such a breakout will see some initial profit taking followed by another burst of buying as momentum based buying kicks into high gear.
To witness a market completely undo such a breakout on massive volume and then to experience only minor additional downside pressure is also something that one rarely sees. We are getting a bird's eye view of something akin to a Supernova in the sense of its rarity.
Silver bounced right off the former resistance zone near $34 noted on the chart and has now returned directly to the same exact resistance barrier that held it in check prior to this Tuesday's breakout ($35.50).
I have to say that if the bulls in this market can blast through this $35.50 - $35.70 level once again and prevent an intraday dip back below this level, those same shorts that rammed it down yesterday once they capped it at the highs, are going to be shell-shocked and that is putting it mildly. Once again you can see how critical this former resistance barrier is on the charts.
Thank you Dan. After all these years I hope this time is really it.
ReplyDeleteWatching the tick by tick action - the cartel is still firmly in the drivers seat. They even have been telegraphing their $10 takedowns when gold hits 1725 (5 of them now) so much so that the traders front run it and do the damage themselves on the short side . In effect, the cartel is pulling the strings of the trader puppets. Sickening.
ReplyDeleteBoth PM's are going to need a reverse waterfall spike on volume to push it through. That's been the modus operandi of late, and I see no reason for that to change now. I would view Monday or Tuesday as more likely - as the cartel will be more inclined to pitch their shorts to clean up the COT, along with finally giving into upside market pressure.