Editor’s Introductory Note:
Today’s short feature post is from our friend Hub Moolman, in South Africa. Hub’s analysis includes two very useful charts.
While I don’t rely on technical analysis, I do find that it often provides useful confirmation for the study of market fundamentals.
For the big market traders, the current silver market seems to be transitioning from the “disbelief” stage to the “mania” stage. It is always difficult to time a market top, and missing a top can be perilous. I did quite well in calling the silver market bottom, on February 8, 2001 in a Usenet post titled: Rawles Calls Major Bottom in Silver Price, but I won’t dare try to call the top. It is better to gradually unwind an investment during a bull market mania. I described one way to do this in my recent article: Planning Your Silver Bull Market Exit Strategy. (Your mileage may vary. But that is the way that I see it.) – JWR
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Even with the successful breakout of the $50 level, silver is still cheap, as pointed out in the chart below.
(The chart above is click-expandable.)
Silver has recently come out of the bottoming pattern that started around 2014 when silver broke down below the channel. That bottoming pattern is very similar to the early 2000s bottoming pattern that started in October 2000 when silver broke down below the channel.Continue reading“Update: Tracking The Silver Bull Market — Key Channels and Fractals, by Hubert Moolman”

