Friday, September 08, 2006
Here is a daily chart of December silver futures. I last commented on this market here.
I have drawn solid red lines to indicate the boundaries of a 575 cent box defined by the 1520 high and the 945 low in July Silver. After the low in June the market has managed to rally to the 2/3 division point of the box (higher of the two blue dotted lines). The break of the past two days has convinced me that the rally is over and that an extended drop has started.
The next downside target is the 1/2 division point of the next lower box. This is the 660 level.