Silver to me looks to be correcting in wave C down. Wave A
bottom was $8. Target from the confirmed H&S pattern is $14. On
the weekly chart wave A bottomed at RSI 30ish in Sep 08 and since
then each subsequent correction the weekly RSI has bounced at
45ish. Last weeks weekly RSI reading was 43 and to give some
perspective into how much price can correct then you need to look
at what price silver was trading when the RSI last traded below 45
on the weekly and what price drop occurred before it bottomed just
below 30. Silver was trading at $17 and put in a low at $8. Silver
drops twice as fast in percentage terms as gold when copper is also
falling. If we expect gold to correct 8% from here to $990 and
possibly 15% to as low as $925 then silver potentially has a 30%
move down. Price in these two cases would be $14.20 (gold $990) and
$11 (gold $925).
$11 silver would be pretty nice (speaking as someone who
unloaded it a bit too early last time!) Not so nice if you own
it though. But we'll see what happens...
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Silver to me looks to
About silver
Posted by phillw on 4th of Feb 2010 at 12:35 pm
Silver to me looks to be correcting in wave C down. Wave A bottom was $8. Target from the confirmed H&S pattern is $14. On the weekly chart wave A bottomed at RSI 30ish in Sep 08 and since then each subsequent correction the weekly RSI has bounced at 45ish. Last weeks weekly RSI reading was 43 and to give some perspective into how much price can correct then you need to look at what price silver was trading when the RSI last traded below 45 on the weekly and what price drop occurred before it bottomed just below 30. Silver was trading at $17 and put in a low at $8. Silver drops twice as fast in percentage terms as gold when copper is also falling. If we expect gold to correct 8% from here to $990 and possibly 15% to as low as $925 then silver potentially has a 30% move down. Price in these two cases would be $14.20 (gold $990) and $11 (gold $925).
The $990 gold should equal
Posted by phillw on 4th of Feb 2010 at 01:12 pm
The $990 gold should equal (silver $13.10)
$11 silver would be pretty
Posted by user32 on 4th of Feb 2010 at 12:43 pm
$11 silver would be pretty nice (speaking as someone who unloaded it a bit too early last time!) Not so nice if you own it though. But we'll see what happens...