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Friday, January 6, 2012

Silverado 2- silver bottom.

Do not get me wrong folks. I am a silver bug and has been ever since 2000. Just taking a hiatus ever since silver hit $40 last year- my long expected target. I did share my thoughts at that time, see my earlier post Silverado. My current suspicion is that we may need still to wait a bit for the final low in silver. I just updated two silver charts with potential targets for the silver bottom around 20 bucks.
From the technical perspective, silver did make a double bottom at 26, but failed to do anything suggesting that that number will hold, finding resistance at 30. The only pattern that would make turn me bullish near term, would be crossing 30 and then finding support at 30 again. Unless that happens, I will be expecting further downside with an excellent support at 20, which I suppose would be a buying oportunity of a lifetime.

Just to sidetrack to the rest of the market, it has the feeling like it wants to move in another downside leg unless something dramatically positive happens next week. Anyway, my guess is that next week will tell.

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