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)



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6 comments:

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

    ReplyDelete
    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

      Delete

    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

      Delete

  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

    ReplyDelete

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

    ReplyDelete

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

    Scott

    ReplyDelete

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