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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • Silver - Continued Accumulation. Breaks Are Being Bought 1 comment
    Jun 6, 2011 12:12 AM

    Sunday Evening  5 June 2011

     Since we previously identified a potential trading range, daily chart,
    it is confirming that the decline from the April high has changed the
    short-term down trend into a trading range.  What we want to point
    out are the last three red volume bars, indications of lower closes
    and typically assigned as "sell" days.  The question to ask is, if
    there is selling activity going on, where are the results?

     The last bar shows evening activity.  The second to last bar is
    Friday results.  A third day of lower lows, but look at the close...upper end of the range, telling us that buyers were present to drive
    price up by the end of the day, and the close was barely below that
    of Thursday.  It looks like downside progress is being arrested.

     With price being in the middle of a trading range, and that is where
    the level of knowledge is at its lowest, for price can go in either
    direction and not violate the trading range high/low, we can still
    garner a piece of information.  The low held the 50% area on
    Friday, and whenever price holds a half-way retracement,
    it indicates a degree of strength in otherwise neutral territory.

     

    SIN D 5 Jun 11 

     We showed this chart in the last article, [See Silver - Keep Buying
    The Physical
    , click on http://bit.ly/kwffb2 third chart].  One point to be
    made here is when we mention areas as opposed to specific prices. 
    The 36.25 area was identified as a level of support.  Price went lower,
    seemingly "violating" that support, but what happened, in the process? 

     Note how the highest volume bars, intra day, take place at the lows.
    If smart money were selling, would they be selling at the lows.  No!. 
    Smart money sells near tops and buys near bottoms.  At recent
    support and at a 50% retracement level, this qualifies as an area of
    support.  That fact that price went so far through a support area and
    closed well, tells us that sell stops from weak-handed buyers who
    were long, exited when the "support" area was "violated." 

     Buyers were taking all that was offered.  In fact, as of Sunday
    evening, buyers are willing to "pay up" as price has rallied from
    "broken support."  It [support} is an area, and nothing was really
    broken that produced damaging results.  As price rallies, this forces
    those who may have gone short and new buyers to pay at higher levels.

     Price is still within a trading range, near term.  Longer term, the
    trend remains string, spacing still exists, and buying breaks remains
    the plan.  If margins are too rich, and they are not for the feint at
    heart or the thinly capitalized players, stick to buying the physical
    bars and/or American 1 oz Eagles, a truly beautiful coin.

     Stick to the plan .


     

    SIN 60m 5 Jun 11

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  • ker.nulov@gmail.com
    , contributor
    Comments (662) | Send Message
     
    hey , today gold put a bearish daily candle. if we close down tomorrow , I am going to issue "Gold is Done" post and that will be the beginning of a long term bear market in PMs.
    To see how low gold can go check this:
    seekingalpha.com/insta...
    silver... I don't know, probably will be at 6.60 or around. below 10 for sure.
    6 Jun 2011, 03:49 PM Reply Like
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