Wednesday, August 02, 2006
Here is a daily bar chart of September silver futures. I last commented on this market here.
I had believed that the early July top at 1182 would end the rally from the 945 low in the July contract which was made in mid-June. Instead that top only marked the end of the first phase of a bigger three phase rally. This morning the market blew past 1182. I now think it is headed for resistance near 1272 which is the 3 and 5/8 multiple of the 351 low made in 1991.
I still think that once the 1272 level is reached the market will break below 900.