Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Weldon's Money Monitor: Silver's Launching Pad Pattern, or Crash Landing??


...we are cautious amid intensifying technical divergences...


We note the short-term technical picture in Silver, as defined by the 120-minute close-only chart of Spot Silver, and observe the following factors:

  • POSITIVE: Our own famed 'Launching Pad Pattern' is evident, defined by a rising right-side trend-line and flat top, similar to the 'gentry' that holds a rocket in place prior to its 'lift-off.'

  • NEGATIVE: The flat top that defines the ignition pivot as per our Launching Pad Pattern also defines a potential triple top pattern.

A move above $9.26 is bullish, as this would 'key' an ignition and lift-off via our Launching Pad Pattern, while a move back below $8.76 would be negative and open the door for a test of the trendline and the longer-term pivot-point just below $8.30.

On the negative side, we note new 'lows' in the COMEX Calendar Spreads, the failure of the Gold-Silver Ratio to break the uptrend line in place since the 1Q of 2004 and the continued push higher in Asian currencies led by the Korean Won and Chinese Yuan.

Indeed, while the macro-secular landscape continues to provide a fertile feeding ground for bullion bulls, we are cautious amid intensifying technical divergences and a severely overbought condition in mining shares.

The Bottom Line: We remain bullish on bullion, but are suffering from a case of 'High Anxiety' this morning.

< Previous
  • 1
Next >
Position in silver
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos