I think silver is going to make a Three White Soldiers candlestick pattern and go into a power uptrend on this breaout from $31. So I thought that this Monday 21/2/2011 will be the third white doldier and will breakout form the trend channel that has formed on the rally that took the price back to $31 after the correction from $31 to $26.
I have reasons for this and will try to post some charts later if anyone is interested!
My call on silver is that it will go to $50 by the end of May, in fact probably sooner. The current rally from $6 to 31 has been at a rate of 18.9 cents per day, just short of the 20c needed to get the price to $50 in about 100 days that remain until the end of May.
The start of the rally from $20 to $30 (in fact the entire rally) was an uptrend that had a rate of 10 cents per day. It took about 120 days from 24th August 2010 until thenend of 2010 to get the price from about $18 to $31. After the correction to $26.40, the recovery rally has been in a tight trend channel (like the start of the $20-$30 rally) but steeper than the first rally. Now we may be seeing the start of a power uptrend as Jim Sinclair call it, and what better time to start a power uptrend than on the breakout from the previous 30-year high of $31?
Do your own due diligence! No advice is meant or implied by this blog. I have a long position in physical silver and am excited about it right now.