Tuesday, May 21, 2013

Silver may have put in a 5th wave bottom yestrday

Yesterday Silver had an interesting day, it was down sharply early morning then rebounded near long term support and formed a large hammer candlestick.  We have had the silver chart labeled as wave 5 pattern with the bounce in April as a 4th wave bear flag needing one more new low as wave 5, perhaps yesterday's action marked a 5th wave bottom?  Today however both silver and gold are down, though still well off yesterday's lows.

We need more evidence but my thought is that silver may have put in a 5th wave bottom yesterday.

The second chart shows a longer term chart that I've been showing for the last 3 years now.  I stated a last year and earlier this year that silver has long term support in the mid $26 area but that if it was lost, it would open the door up for silver to sell all the way down to the next long term support between 19.5 - 20.  As you can see this long term support was basically tested yesterday.

Otherwise no change in trend as of yet, the uptrend continues, let's see how this plays out over the next couple of days

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