SILVER IS AT A CRITICAL POINT
If you’ve been waiting for a good time to buy silver, well… right now looks pretty good.
Since topping out close to $50 per ounce in April 2011, silver has trended lower.
In fact, as you can see in the chart below, silver is tracing out a giant descending-triangle pattern…
[ad#Google Adsense 336×280-IA]This chart shows a series of lower highs… and a constant pounding of the support level at about $26.50 per ounce.
If silver breaks the support line, it could create a sharp drop lower to the next support zone near $20.
On the other hand, if silver holds support here, it could easily break out of this pattern to the upside… and we could see it trading at $35 per ounce.
Aggressive traders should consider buying silver here with a very tight stop at $26.50 for a low-risk trade.
You’d risk about $0.76 for an opportunity to make $7.50 or more.
– Jeff Clark
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Source: Market Notes