Silver: historical upside potential

As we look back at silver prices for the week ending January 22, 2012, it appears to confirm the beginning of a potentially powerful upside bullish breakout.

In using the weekly point and figure silver chart above, we can clearly identify a double bottom formation on the weekly charts. This is a very bullish sign and confirmation the market has satisfied testing previous levels of support and is ready to challenge the upside Fibonacci retracement levels called resistance points or swing targets:

1. 32.8% = 31.70

2. 50% = 35.12

3. 62.8% = 38

4. 72% = 40.65

A weekly close above 40.65 sets the market up to challenge the 50 to 52 levels, a very realistic profit objective for the first few months of 2012.

Eurozone Crisis Continues

It appears inevitable the ECB has run out of options to stabilize and strengthen the financial core of the euro zone without continued and massive injections of capital to its weaker members.

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Posted by Silver Guru on Jan 26 2012. Filed under Silver Analysis. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry