Thursday, July 27, 2006


Here is an hourly chart showing pit and electronic trading in September silver futures. I last commented on this market here.

I thought silver would hold below its high of July 20 at 1135 but instead the market rallied to 1150 this morning. At the 1150 level I can identify a clear three phase rally. Since I also see some resistance near 1150 I think the marke will now begin a drop to 990. Over the next couple of months I expect to see silver trade below 900.

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