Thursday Evening 27 January 2011
No matter how well analyzed or reasoned one's view of any
market, the market could care less...it just is. We thought we had
a bead drawn on a turnaround in yesterday's article, [See Silver -
Patience, Points, And A Plan, click on http://bit.ly/eCPpkr]. While
the support area identified is holding, now tenuously, we
anticipated a turnaround and continued upside in the hourly time
frame. That lasted for just one day.
The importance of any trend is always preeminent, and that is
evidenced by price still holding at the lower area of the channel.
In a previous analysis, the monthly chart was shown, and the
higher time frames are more controlling. We said that silver was
likely to be contained within January's range, and "...at least we
know silver is not about to run away to the upside." [See Silver -
Know Your Time Frame, click on http://bit.ly/hvA061, second
Having Patience never changes. What does change is the Plan
as new market activity unfolds. Silver is in a broad trading range
on a daily chart, starting from the breakout and retest in November
2010. The immediate portion of the range is clearly down. The
plan now is to wait for more developing market activity to find another opportunity.