Silver chart technical patterns

[jim4silver]

Some PM bull pundits are pointing out that it appears that a head and shoulders is forming in silver (see below link). Generally, a head and shoulders means the price will fall well below the second shoulder's base line. This would crush silver down near a price that might make sure holders who bought at 30 will cry like babies (except for those who want to buy more cheaper).

They might turn out to be correct as far as price movement goes, but wrong on the head and shoulders. The head and shoulders is one of the most reliable TREND CHANGE indicators and appears at a market TOP. This is elementary chart analysis. All folks who follow silver know we are in a bottom or close to bottom area. We are nowhere near a top of anything.

There is also in silver's chart what appears to be a possible inverse head and shoulders forming, which is a powerful indicator often of a trend change as well, but in this case it would be good for silver. Too soon to tell on this one.

Anything can happen of course, just seems a bit odd that as silver gets blasted constantly, even the chart patterns seem to be doing strange things, that is if we do get a h and s and it proves true when no where near a top in price.

Cartel Paints Head & Shoulders Pattern on Silver Targeting $12-$13! | SilverDoctors.com

PS I am hoping since this theory is put forth by some PM bull type sites, they will be wrong as they have been for some time on their bullish calls.



PSS After posting this I see a converse article on the same PM bull site ( I do go there each day to read so I am not knocking the site, just some of the usual drama stories they post frequently). This guy is a PM bull that points out the inverse h and s I mentioned above.

http://www.silverdoctors.com/bo-polny-start-your-engines/#more-52526

Will be funny if BOTH turn out to be wrong.

Just my opinion,


Jim

 

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[Jason in Enid]

I wish I could find a chart which showed the average daily price overlapped with actual current price. My retirement investor showed me this for other stocks and markets he watches to decide when to buy and sell. When a commodity or stock is selling below it's average, it is under-performing and time to buy more. When it is trading above its average it's time to sell some and move that into an under-performing one. It's part of the cycle of constant up and down, you don't try to sell at it's highest or buy at the lowest because thats a losing game. Buy low, not lowest, sell high not highest.

So, anyway, have you seen anything like that for silver?

 

[jim4silver]

I wish I could find a chart which showed the average daily price overlapped with actual current price. My retirement investor showed me this for other stocks and markets he watches to decide when to buy and sell. When a commodity or stock is selling below it's average, it is under-performing and time to buy more. When it is trading above its average it's time to sell some and move that into an under-performing one. It's part of the cycle of constant up and down, you don't try to sell at it's highest or buy at the lowest because thats a losing game. Buy low, not lowest, sell high not highest.

So, anyway, have you seen anything like that for silver?

Not that I am aware of. Since silver is always under-performing I doubt that such a chart would work for silver.


Jim