Wednesday, March 14, 2012

Silver approaching neckline of a Head and Shoulders pattern

Bulls do not want to see this neckline of a "Head and Shoulders" pattern fail on the daily chart in silver, right hand side below.  A H&S pattern is not bearish until then.

Failed patterns are the strongest signals so should it breakdown with no follow through, the right shoulder becomes a target once back above the neckline.

I won't be trading silver to the long side below the neckline, I don't look for bargains.  A retake of the right shoulder will be a bullish development if there is no follow through to the downside.

(Click on chart to expand)


6 comments:

  1. If the comex is rigged, then why should the head and shoulder be reliable????????

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    Replies
    1. Because traders use Tech Analysis to trade. COMEX starts the rigging, traders end it by using emotion, fear, greed and/or technical analysis

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    2. Ted Butler has an interview that was posted at Ed Steer's gold and silver daily today, and in this interview he discusses exactly what you are saying Vinny.

      Scott

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  2. That is a fair question Anonymous.

    I know the conspiracy theories, but I follow the auction first and foremost. Everything is reflected in the open interest, price and volume. This is my strongest belief which over rules everything else for me.

    Scott

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  3. What do you think of the warrants on junior miners? Or do you just stick with futures?

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  4. Thank you for the comment. I only day trade futures.

    Scott

    ReplyDelete