Sunday, March 18, 2007

A Silver Update - What Now?

After pronouncing that Silver had "broken out" a couple of weeks ago, Silver quickly changed course and dropped significantly. Has this negated the breakout? While at first glance it may appear so, looking a little closer it seems that Silver may just be shaking out the final longs before it heads up to higher levels.

While it did break slightly below its long term up trend, it has closed back above it now and this is not unusual behavior for the tiny and easily manipulated Silver market.

Taking a look at a Point and Figure chart we see there has been no damage done and the projected price of $21.00 plus still remains.

Silver clearly needs to take out the $15.00 per ounce mark and do it convincingly to prove that it is ready to move higher.