For Professional Clients Only. Not Investment Advice. For Information Purposes Only.
Good Morning, from a quick look at the charts, the next level of any real significance is c.22. That is a support level extrapolated from around 7 years of data back to 2003/4. Looking back even longer, given the many years that Silver spent priced at less than 10, the very long term support line and trend
line would give a support around 15. The last breakdown in Silver in 2008 resulted in a 50% retracement (peak to trough from ~20 to ~10), we've almost hit that sort of retracement already (48 high, low recently was 26). Leaving aside the possibility of a knee-jerk move back up to over 30, I think if you
were looking to average or get involved, it may be best to have keep some of your bullets back for later use in case we do see these lower levels. Any Twitter or Blog fans will already know we are watching for c.1500 on Gold before we examine it further, we pretty much got there in one session! The increase in margin requirements by the CME will have hastened this correction along as well.
Thanks, Meenaz
Good Morning, from a quick look at the charts, the next level of any real significance is c.22. That is a support level extrapolated from around 7 years of data back to 2003/4. Looking back even longer, given the many years that Silver spent priced at less than 10, the very long term support line and trend
line would give a support around 15. The last breakdown in Silver in 2008 resulted in a 50% retracement (peak to trough from ~20 to ~10), we've almost hit that sort of retracement already (48 high, low recently was 26). Leaving aside the possibility of a knee-jerk move back up to over 30, I think if you
were looking to average or get involved, it may be best to have keep some of your bullets back for later use in case we do see these lower levels. Any Twitter or Blog fans will already know we are watching for c.1500 on Gold before we examine it further, we pretty much got there in one session! The increase in margin requirements by the CME will have hastened this correction along as well.
Thanks, Meenaz
