Is the downtrend in silver over?

[mmerlinn]

It looks like silver may have finally broken the downtrend. If it has, the rocky ride up will resume.

Gold is trying real hard, but hasn't quite made it yet.

 

[pmbug]

 

[DSAbug]

continuous gold futures contracts actually have been above the trendline for over a week. 4 closes. Silver has 3.

I think we will probably see more drama before a dramatic rise. Bernanke has a speech on Friday and then a fed meeting coming up. I'm hoping we see more continuation and then start a retracement to keep things from getting frothy. I want the move this fall to be sustainable and exciting..

 

[mmerlinn]

I'm hoping we see more continuation and then start a retracement to keep things from getting frothy. I want the move this fall to be sustainable and exciting..

Typical formation on breakouts is that after the breakout, prices usually drop back to the breakout line a few weeks later. In silver today, assuming that silver has indeed broken the downtrend, that could mean as low as 26 around the end of the year, but more likely 28 in October for the last great buying opportunity.