Tuesday, April 11, 2006
Here is an hourly chart showing pit and electronic trading in May silver.
I think the move up has reached at least a temporary high at 1301. Here's why.
First of all the market has reached a strong resistance level at 1273, the 3 5/8 multiple of the 1991 low at 351. So far it hasn't been able to close above this level. This fact sets the stage.
Next note that the drop from the 1301 top at point l is bigger than the two preceeding breaks, g-h-i and j-k. Also the market has broken below the previous low at point k and then rallied to a lower top.
The next big move from here will be downward.