Prepare to Buy Silver in Dollar Terms…..
- Posted by Greg Harmon
- on October 2nd, 2012
…..If you have not already. Three weeks ago Gold and silver broke out of patterns higher as measured in Euros as was detailed in Gold and Silver are Breaking Out….. In US Dollar terms they have been grinding in consolidation but there are signs Silver ($SI_F, $SLV) is well on its way to that parabolic top near 50 again. Take a look.
The daily chart above shows the run out of the symmetrical triangle higher to consolidation around 34. A Measured Move higher over the flag takes it to 40. The Relative Strength Index (RSI) has worked off an overbought condition and the Moving Average Convergence Divergence indicator (MACD) has flattened. The time may be near. If you had any question about which direction is favored on a breakout then just pullback to the weekly chart below. Silver moved over downtrending resistance 7 weeks ago and is now ready to test the 35.60 double top. This view has a target higher to 44.60, near the 2011 high on a break over that resistance.
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Dragonfly Capital Views Performance Through September 2012 Expiry
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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Gregory W. Harmon CMT, CFA, has traded since 1986 and held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)


