26 December 2011

Detailed silver chart


Silver should have good support at 25-26 if it falls there again. I'm not sure that it will considering how much effort it took to drive gold prices down so hard. Also in favor of silver is the COT report that hasn't been this bullish since silver bottomed at US$4.34 in 2003! Yes, that means the COT is even more bullish than it was in October 2008. But, be warned that it can go even lower. If large speculators go net short, though, it's definitely time to buy.



Watch the action at the trendlines.

Disclosure: Long physical gold/silver.


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