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Saturday, July 9, 2011

Silver - Symmetry

Analysis of symmetry to each side of the Cycle Line supports a capitulation plunge for Silver next.  The next moves suggested by the symmetry match up well with other patterns I am following.  The white line indicated with the 2 green arrows has been an important line of resistance in previous months.   

Gold symmetry is extremely bearish as I will show next.

60min Chart
     
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6 comments:

  1. The HookJuly 10, 2011 at 4:28 AM

    Small specs have the lowest silver longs since Feb 2010. So I think something needs to get them excited before silver goes down.

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  2. BlakeJuly 10, 2011 at 8:28 AM

    Thanks for the post SC! Do You think it is possible that the rally extends to the purple horizontal line, or will this white line very likely cap it? Thanks again, blake

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  3. SCJuly 10, 2011 at 8:32 AM

    Astro, For SPX I see bears in control for a number of weeks now, but then I do see another power rally shaping up later on. I'm just focusing on things one step at a time.

    Hook, thanks for the data. I think small specs might get more excited in the fall. Do you have data on shorts?

    One could say we might need to see the small specs get short before Silver can rise? At this point I'm looking for a relatively quick capitulation for Silver, not a long lasting decline.

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  4. SCJuly 10, 2011 at 8:42 AM

    I think there is almost nothing for Silver upside here Blake. The purple line was already tested, and the result was a sharp failure. I doubt very much it is able to reach anywhere close to that line (any time soon). I could see Silver grinding just above the white line, but that's about it.

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  5. The HookJuly 10, 2011 at 10:57 AM

    You can get net futures exposure at softwarenorth.com

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  6. ChrisJuly 10, 2011 at 4:16 PM

    I guess I'm not convinced the symmetry is relevant. I see it as a side effect of Elliot wave, which actually indicates the high probability of continued upside in a C wave above the previous late May high before the big plunge.... possibly as high as $40.

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