"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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Saturday, January 12, 2013
Silver has been stuck in a range trade for the last month with selling entering on approaches to $31 and beyond while buying has appeared on moves down to $30 and lower.
The RSI or Relative Strength Index has been stuck in a range between 65 on the top and 30 on the bottom. The indicates a market within a consolidation pattern with a bit of a friendly bias to it. It's ability to remain above 30 on the RSI suggests that the next move will be to the upside although it will need to push past that stubborn overhead resistance zone noted on the price chart in order to do so.
I think that as long as Copper, Palladium and Platinum continue to look strong on the price charts, the Silver bears are going to have their work cut out for them in breaking down the support zone noted. Also, it is difficult to conceive of this market falling apart with equities continuing their upside party.
Any move through the late December high near $31.50 will spark a strong wave of short covering.