Best of the Week
Most Popular
1.US Paving the Way for Massive First Strike on North Korea Nuclear and Missile Infrastructure - Nadeem_Walayat
2.Trump Reset: US War With China, North Korea Nuclear Flashpoint - Video - Nadeem_Walayat
3.Silver Junior Mining Stocks 2017 Q2 Fundamentals - Zeal_LLC
4.Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - Nadeem_Walayat
5.The Bitcoin Blueprint To Your Financial Freedom - Sean Keyes
6.North Korea 'Begging for War', 'Enough is Enough', is a US Nuclear Strike Imminent? - Nadeem_Walayat
7.Bitcoin Hits All-Time High and Smashes Through $5,000 As Gold Shows Continued Strength - Jeff_Berwick
8.2017 is NOT "Just Another Year" for the Stock Market: Here's Why - EWI
9.Gold : The Anatomy of the Bottoming Process - Rambus_Chartology
10.Bitcoin Falls 20% as Mobius and Chinese Regulators Warn - GoldCore
Last 7 days
Brexit UK Vulnerable As Gold Bar Exports Distort UK Trade Figures - 18th Oct 17
Surge in UK Race Hate Crimes, Micro-Racism, Sheffield, Millhouses Park, Black on Asian - 18th Oct 17
Comfortably Numb: Surviving the Assault on Silver - 17th Oct 17
Are Amey Street Tree Felling's Devaluing Sheffield House Prices? - 17th Oct 17
12 Real-Life Techniques That Will Make You a Better Trader Now - 17th Oct 17
Warren Buffett Predicting Dow One Million - Being Bold Or Overly Cautious? - 17th Oct 17
Globalization is Poverty - 17th Oct 17
Boomers Are Not Saving Enough for Retirement, Neither Is the Government - 16th Oct 17
Stock Market Trading Dow Theory - 16th Oct 17
Stocks Slightly Higher as They Set New Record Highs - 16th Oct 17
Why is Big Data is so Important for Casino Player Acquisition and Retention - 16th Oct 17
How Investors Can Play The Bitcoin Boom - 16th Oct 17
Who Will Be the Next Fed Chief - And Why It Matters  - 16th Oct 17
Stock Market Only Minor Top Ahead - 16th Oct 17
Precious Metals Sector is on Major Buy Signal - 16th Oct 17
Really Bad Ideas - The Fed Should Have And Defend An Inflation Target - 16th Oct 17
The Bullish Chartology for Gold - 15th Oct 17
Wikileaks Mocking US Government Over Bitcoin Shows Why There Is No Stopping Bitcoin - 15th Oct 17
How to Wipe Out Puerto Rico's Debt Without Hurting Bondholders - 15th Oct 17
Gold And Silver – Think Prices Are Manipulated? Look In The Mirror! - 15th Oct 17
Q4 Pivot View for Stocks and Gold - 14th Oct 17
Gold Mining Stocks Q3’17 Preview - 14th Oct 17
U.S. Mint Gold Coin Sales and VIX Point To Increased Market Volatility and Higher Gold - 14th Oct 17
Yuan and Gold - 14th Oct 17
Tips for Avoiding a Debt Meltdown - 14th Oct 17
Bitcoin Hits New All-Time High Above $5,000 As Lagarde Concedes Defeat and Jamie Demon Shuts Up - 13th Oct 17
Golden Age for GOLD, Dark Age for the Stock Market - 13th Oct 17
The Struggle for Bolivia Is About to Begin - 13th Oct 17
3 Reasons to Take Your Invoicing Process Mobile - 13th Oct 17
What Happens When Amey Fells All of a Streets Trees (Sheffield Tree Fellings) - Video - 13th Oct 17
Stock Market Charts Show Smart Money And Dumb Money Are Moving In Opposite Directions—Here’s Why - 12th Oct 17
Your Pension Is a Lie: There’s $210 Trillion of Liabilities Our Government Can’t Fulfill - 12th Oct 17
Two Highly Recommended Books from Bob Prechter - 12th Oct 17
Turning Point Nations On The Stage - 11th Oct 17
The Profoundly Personal Impact Of The National Debt On Our Retirements - 11th Oct 17
Gold and Silver Report – Several Interesting Charts - 10th Oct 17
London House Prices Are Falling – Time to Buckle Up - 10th Oct 17
The S&P Is A Bloated Corpse - 10th Oct 17
Are Gold and the US Dollar Rallying Together? - 10th Oct 17

Market Oracle FREE Newsletter

3 Videos + 8 Charts = Opportunities You Need to See - Free

Silver Price Pushing On A String

Commodities / Gold and Silver 2013 Sep 29, 2013 - 10:21 AM GMT

By: Michael_Noonan

Commodities

Little in the way of news has transpired in the past week that could have an impact on the silver market. The main stage has been set for some time, regarding all the known factors affecting silver, to date. There is no need to review any of them, at this point.

What can be noted is that the CFTC has reached the conclusion that the “alleged” manipulation by JPMorgan in the silver market, well documented and presented to the CFTC by Andrew Macguire, was much ado about nothing.. Just like lackey Eric Holder, chief law [un]enforcement official a the Dept of [no]Justice, has not been able to uncover any wrongdoing by Wall Street over the past 5 years, the CFTC ran into the same “bad luck” during its two-year investigation.


What this tells everyone with an interest in owning gold and silver is that the wheels are coming off the central bankers greed cart, and when that happens, silver will be at or above where most imagine it can go. Continue to buy and hold. It is just a matter of time. How much time will be irrelevant, once it everything falls apart, and fall apart it will.

Our latest view of the market was provided in “Central Bank Death Dance, Part I,” [here, if you did not read it]. It presents a less conventional outlook on what not enough people are taking into consideration in trying to understand why silver has not rallied strongly, based on otherwise very strong demand factors.

This article is more abbreviated for content, as a consequence, so we go directly to the charts, and even they have little to add as price moves in a sideways fashion.

The final close for the monthly chart is Monday, but unless price makes a dramatic move up or down, September has been an “inside range” bar. It has done little to erase the stronger August rally bar, and for that reason, a slight edge goes to the bulls. What is critical now is for demand to take over and rally price higher.

Sentiment aside, our expectation is for a more protracted sideways range in the months ahead. We could be wrong, but it is an “odds-on” assessment. As always, we let market activity make the final determination, as it always does.

Not much can be learned from the weekly and daily charts, so we skip to a few intra days to see if there are developing clues. The 90 minute chart shows a strong D/S, [Demand over Supply] day on high volume, 18 September. It did not go much higher, and it set up the upper bound for a TR to follow, unknown at the time.

A few days later, a counter-punch by S/D, [Supply over Demand], on even higher volume. This downside effort also failed to result in any further downside, and it held the lows of the D/S bar, a plus for the buyers.

Not much else can be said as price has since moved sideways for five more TDs, letting us know the buyers and sellers are in balance. What we also know is this form of balance inevitably leads to unbalance, and a directional move can be expected to follow as price moves further along the RHS of the TR, [Right Hand Side of Trading Range.]

Zooming down to a 60 minute chart does not offer a higher degree of clarity, but there are a few developments that appear more positive than otherwise. Keep in mind, this is an intra day chart, and the lasting effect is weaker than a higher time frame, weekly or daily.

The chart comments give what we see. As price moves further along the RHS of a TR, the market is closer to reaching an imbalance, and that is where some low-risk entries can be made, if the set-up is clear enough on the lower time frame charts.

The decline for the latter part of Friday was labored after the EUM rally early in the day. [Ease of Upward Movement]. We pay attention to the how of developing market activity, and the EUM is stronger than the labored “correction” that followed. If we had to take a stand, we would expect more upside on Monday, but that is just a non-committed “guess” because price can open lower. The market is not concerned about our “guesses,” anyway.

We remain lightly committed to the long side, but the sideways activity has not done much for the position. Plan accordingly and follow the market’s direction.

By Michael Noonan

http://edgetraderplus.com

Michael Noonan, mn@edgetraderplus.com, is a Chicago-based trader with over 30 years in the business. His sole approach to analysis is derived from developing market pattern behavior, found in the form of Price, Volume, and Time, and it is generated from the best source possible, the market itself.

© 2013 Copyright Michael Noonan - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Michael Noonan Archive

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife