Man on the Silver Mountain

silver.march

(click for larger image)

The long-term uptrend in silver has been broken. You can see it a little more clearly in the chart below:

silver.mountain

(click for larger image)

I wouldn’t suspect that the contract will range between $28.50 and $31.00 before turning down…it very well could continue higher. Sometimes the charts just kick out and start a new trend with a different angle – sometimes steeper, sometimes flatter. Not every trend reversal shows up as elegant as the Sperandeo 123 Trend Reversal pattern, so you have to act fast.

Interesting to note that this contract went parabolic in early November and after a decent wave of profit taking, continued in the uptrend.

If the contract rallies to $30.50 or higher and fails, I would liquidate long postions. My guess is it will fail fast and the next stop on this train will be $25.00.

I have no position in silver at this writing.

Don’t forget to sign up for the Master Class with Victor Sperandeo on February 4 in NYC.

Please note: I reserve the right to delete comments that are offensive or off-topic.