Circling Back to Gold and Silver
With the top in silver at the 32.58 level in the silver futures, we now have a perfect confluence with the 30.27 level to the downside in a-b-c fashion within the 5th wave of an ending diagonal. This level is just below the 0.618 retracement of the prior larger rally earlier this year and is also right in the region of the c=1.382*a calculation in this larger corrective pattern. This provides very nice confluence within the target 30.40 region we have been watching.Silver Futures Source: TradeStation View Chart » View in New Window »
From a technical standpoint, the selling volume on declines has not been increasing relatively to prior declines, which still allows us to maintain our corrective perspective regarding this decline. Furthermore, we are seeing even further positive divergences on the MACD in the attached 144-minute chart. Last, we are seeing some nice positive divergences in the daily chart on these drops, which is a very telling indication that the bottom is near....406 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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