Silver Poised To Explode

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aitakahashi

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Silver Poised To Explode

posted on Aug 30, 2010 06:41PM

this is from the golden truth:

Since my post on Wednesday didn't jinx the price of silver, I'm going to keep riding the horse. In fact, contrary to the expectations of many, silver has moved higher thru Thursday's option expiry and thru most of the "roll" period in the futures from September to December. Not only is this price action exceedingly bullish, but I can not recall anytime during the last 9 years that silver has moved sharply higher like this during Comex options expiration/futures roll (that's not to say it hasn't happend, I just can't remember it if it has). This price/volumn action further underscores the bullishness of the market.

Here's is an updated weekly chart of September Comex silver. I can't recall ever seeing a chart formation in silver that looked this bullish. Recall that when gold broke out of its massive head n shoulders formation, it ran from $1030 to $1250, or 21%, in a short period of time. Here's the chart:

(click on chart to enlarge)

Silver, which typically lags gold until the end of a bull move, is getting ready to break out of its massive HnS formation. When silver makes a big move, like in 2005-2006 for instance, it outperforms gold by at least 2-to-1. If we apply that metric to silver on its HnS breakout, that would give it an initial target of $26. I know several chart technicians who believe silver can make an initial run to $30. I'll stick with my view for now and enjoy being wrong if that's the case.