SILVER is way, way overbought. The RSI is at 81.04, and anything above 70 is overbought.

goingbroke

Tomorrow will inform us what to expect of silver and gold against a more persistently rising dollar. Clearly, though, the Federal Reserve and the Obama regime have taken the monumentally stupid (and ideologically Keynesian) decision to try to rescue the US economy by devaluing the dollar, maybe by 25% in six months. Remember that Roosevelt devalued the dollar from $20.6718/oz to $35/oz by 41%, but he did that over the course of a year. Then the economy REALLY tanked, and the stock market plunge of 1937-38 was even worse than the 1929 crash. Ahhh, but the builders of this Maginot line still believe that what failed in the 1930s will work today, if we only do MORE of it.
December silver futures last traded up 94.3 cents at $28.375 an ounce Tuesday morning. Prices hit another fresh 30-year high overnight. Silver bulls have the strong overall near-term technical advantage. There are no early technical clues to suggest a market top is close at hand. However, silver is now short-term overbought, technically, and due for a corrective pullback soon. The next downside price objective for the bears is closing prices below solid technical support at this week's low of $26.515. Bulls' next upside price objective is producing a close above solid technical resistance at $30.00 an ounce. First resistance is seen at the overnight high of $28.57 and then at $28.75. Next support is seen at $28.00 and then at the overnight low of $27.53. Today's near-term Fibonacci support/resistance level: $26.83.

Justacommeman

Source? Franklin Sanders- Moneychanger? Link? MJ

ebaytrader

<< <i>SILVER is way, way overbought. >>



Another bubble?





Go figure.

roadrunner

Yeah. Silver's been "overbought" since about $22-$24. I suspect the entire stock market was mostly "overbought" from 1996-1999. Doesn't really mean a thing how long anything's been overbougt when the rule book has been thrown out the windown. The rule book was tossed out the window 15-20 yrs ago. We're just now experiencing those effects in PM's and commodities. For every reaction, there is (eventually) an equal and opposite reaction.

roadrunner

jmski52

Rick Santelli quote of the day, "you can print paper but you can't print soybeans".

Sure, there's a bunch of speculation going on in silver, but it's still about QE2 and fiscal policy in the end. Silver is bound to take a hit, but it won't be over when it does. The market seems to understand policy better than the policymakers do.

MilesWaits

With this rate of ascent, does the term "correction" switch to a different meaning? Does this new paradigm that RR and others refer to redefine the term?

Is the act of not going up faster or steeper at an increasingly breakneck speed justify the alteration in thought?

Am I making sense? Does this market have to make sense in previous terms/historical comparisons?

Miles

19Lyds

<< <i>With this rate of ascent, does the term "correction" switch to a different meaning? Does this new paradigm that RR and others refer to redefine the term?

Is the act of not going up faster or steeper at an increasingly breakneck speed justify the alteration in thought?

Am I making sense? Does this market have to make sense in previous terms/historical comparisons?

Miles >>

And where does the 16/1 ratio kick in or is that a "thing from the past"?

ksammut

There will be a correction or at least a pause as nothing moves straight up.

When you have a relatively small market like the PM market, a large inflow of investments are going to cause a spike. Over the past year or two, it was investors small and large who have understood the economic train wreck that would be taking place in the years to come. They continued to add to their positions and moved up PM prices gradually.

Over the past few weeks, more have come to see the problems and have been investing in ETFs, PM mining companies, and the metals themselves. This along with some short squeezing taking place has given us this nice spike up.

A quick word on Metal ETFs - Most have all or at least a percentage of metal to back up each share they have outstanding. They have become a huge buyer of PMs. This is a new development and has added to the spike. If there were Metal ETFs back when the Hunt Brothers were buying up all the silver the could, they would have had an easier time of it. They may not have had to leverage so much and there would have been more investors helping them accomplish their goal.

As PMs are being talked about every day on the news, cable shows, on the internet, and in our newspapers, the average Joe and Jane start investing money in PMs. This takes the price up higher. We are probably going into this stage now.

All of this is short term so there will be some profit taking and it may bring the prices of all of the above down. Long term, all the problems that suggested to us that we be in PMs are still there and the long term price will be higher and probably a lot higher than prices are right now.

For me, my core position will be held not matter what the price. I will trade my shares and options to take advantage of price moves. I believe we have another 10% upward in prices before we see some profit taking. At least that is when I will be taking some profits.

Once the profit taking takes place; governments, institutions, and large investors will take advantage of the lower price. So any correction will not be that great and should not last too long.

piecesofme

I think it's an efect of being manipulated for so long. Enough big money got behind it from being held down from where it should be finally and now the price is free to find what its true value is now.

Overdate

<< SILVER is way, way overbought. The RSI is at 81.04, and anything above 70 is overbought. >>

The Titanic is way oversunk, and is due to float back to the surface any day now!

cone10

<< <i>Source? Franklin Sanders- Moneychanger? Link? MJ >>



link

Bossman88

Is this just profit taking we are now seeing on the chart?

Regards, Larry

Wolf359

Algo sell off.

These corrections have been incredibly short and swiftly over-come for the past 2 months. I would expect the same here.

PS. APMEX appears to be out of 100 oz bars - first time I've ever seen that. APMEX link-a-roonie

OPA

<< <i>Is this just profit taking we are now seeing on the chart?

Regards, Larry >>



A $3 drop in one day from it's daily high or almost 10%, I don't think this can be considered a blow out. We shall see what happens tomorrow, but as the saying goes "what goes up eventually comes down to earth" ... It's been a fantastic 2 weeks to take some money of the table ... time to wait for the next round.

7over8

silver will be overbought when we hit the old high adjusted for inflation.

nowhere near that yet.