Friday, December 30, 2011

Currency Wars, Silver, and QE3 [BY RUSS WINTER 12/22/2011 Financialsense.com]

The set up for silver looks like a Bump-and-Run Reversal Top pattern consisting of three main phases:
1. A lead-in phase in which a lead-in trend line connecting the lows has a slope angle of about 30 degrees. Prices move in an orderly manner and the range of price oscillation defines the lead-in height between the lead-in trend line and the warning line which is parallel to the lead-in trend line.
2. A bump phase where, after prices cross above the warning line, excessive speculation kicks in and the bump phase starts with fast rising prices following a sharp trend line slope with 45 degrees or more until prices reach a bump height with at least twice the lead-in height. Once the second parallel line gets crossed over, it serves as a sell line.
3. A run phase in which prices break support from the lead-in trend line in a downhill run.

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