Technical Analysis for Silver
Unfortunately for silver, technical analysis is not very accurate. However, technical analysis can still be helpful since key levels that are broken can trigger the computers to go ape shit. Which is why we are writing this now, silver is approaching the $30 level and IF the market starts to price in bad news as bad news, then silver could have a violent pull back to the $25 level.
Many stocks are approaching their 50 day moving averages, including the S&P 500 index, so if we breakdown, the FED will finally get exactly what it wants. We believe this deflationary shock will be short lived as it will be followed up with more quantitative easing within the next 60 days. In fact, FutureMoneyTrends.com believes we will ultimately see $2,000 gold this year and $50 silver, but that doesn’t mean we don’t see $1,400 gold and $25 silver first.
The silver market is supported at this level and as long as we stay above the $30 level, it should remain stable.
You have to keep in mind that if the FED wants a deflationary mini-shock in order to announce more QE, Silver, Gold, and Oil are at the top of their list for assets they would like to see lower prior to injecting more liquidity into the markets.
Editors Note: FutureMoneyTrends.com staff is EXTREMELY BULLISH on silver over the long term, we just purchased more physical silver last week at $30.65. We believe people should own physical silver for protection and mining shares for profit.
Currently, a FutureMoneyTrends.com staff member has placed a small bet against silver in the short term, this is simply an insurance policy in case we do have a downturn over the next few days as silver approaches the $30 level of support. This staff member has purchased 300 SLV JUNE/25 PUTS. This is roughly a $5,000 bet that could pay off big if silver goes below the $30 level. The reason we call it a bet is because that is exactly what it is. This has nothing to do with the fundamentals for silver and is pure speculation on what the FED will do and how Wall St. will react over the next few days. This trade will be closed out within the next 2 trading days.
