Wednesday, September 28, 2011

Silver ~ Update ~ 28 September 2011

From the top at 50 $ an ounce silver has lost almost 50 %. So far it looks like a perfect ABC thus wave [4] may have been completed at 26$ and wave [5] is underway now. It's too early to tell though, I'd like to see a break of the 33ish area first. If we break and hold this level we should be in wave [5] back up to the all-time highs:

As mentioned earlier this week we should see a bounce from 26 $ probably up to the 33 $ resistance level. And that actually happened - after a 13 $ drop within 48 hours we got a 28 % rally within 30 hours!

Resistance levels still are around the 33 $ level and then at 39 $. Support levels are at 26 and around 20-21 $.

On Monday we got one hell of a reversal:

I think that's the biggest doji I've ever seen in my life. Dojis usually form at market turning points thus we may have seen a short-term or even medium-term low on Monday.

To sum up, despite the huge sell-off silver looks still bullish long-term (we could drop a bit further to 20ish though). Short- and medium-term silver is bullish again once we break the resistance at 33ish (and hold it afterwards).