Gold News

Silver Bullion: Preparing for a Breakout?

"The Mother of All Mid-Point Consolidations"...

THE LONG TERM graph for silver shows what we have dubbed THE MOTHER OF ALL MID-POINT CONSOLIDATIONS or MOAMPC, writes Gene Arensberg at GotGoldReport

Silver has broken out of the giant flag consolidation and has put in one new higher high and low since doing so.  A print above $35.50 will establish the second higher high.

Bull markets are measured on charts as a series of higher highs and lows.

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Since 2003 silver has redefined upper resistance four times in what we call Definition Moves (DMs). Definition Moves are periods where the issue or market breaks out above long time resistance, surging, often in a parabola, to define a new, much higher level of resistance for a significant period of time.

If silver is in the beginning of a new DM, now, 20 months after its test of the all-time high, we would expect it to challenge the resistance area more than once before it blasts higher in another parabolic thrust. It has done so (tested the new resistance zone without breaking out more than once) in all of the previous DMs.  We note that silver has already tested the resistance zone once.

Of course, past performance is no guarantee of future results...

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A land developer, professional numismatist, self-taught bullion trader and investor since 1980, Gene Arensberg analyzes technical and fundamental developments in the precious metals markets. In 2000 Gene started sharing his own market research with fellow traders and fund managers. Those email reports evolved into his popular Got Gold Report, a biweekly look at important indicators for gold and silver published on the web. Gene's more in-depth market reports, insights and trading ideas are available at GotGoldReport.

See the full archive of Gene Arensberg.

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