Silver Coiled and Ready to Spring

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Will our current rising trend line support the price of silver or will we see a temporary breakdown? That previous rising trend line lasted 8 months. This current one has lasted 10 months. Once again, a breaking of the previous high of late February is required to maintain the bullish sequence of higher highs and invalidate that analysis.

Roland Watson (The Silver Analyst) submits: Back in the middle of April, I wrote an article that suggested a price pattern for silver that has not been publicized much. In an often polarized area of debate, it was a position that was neither bullish nor bearish but rather a suggestion that silver would drop into a channel formation prior to its next price explosion. I quote from the article:

Note how after the big drop in April 2004, silver also advanced in a similar fashion to our current moves on a rising trend line until the old highs of $8.50 were nearly taken out in December 2004. However, this trend broke to the downside to begin a channel movement for silver for some months before the true breakout occurred in September 2005.

Will our current rising trend line support the price of silver or will we see a temporary breakdown? That previous rising trend line lasted 8 months. This current one has lasted 10 months. Once again, a breaking of the previous high of late February is required to maintain the bullish sequence of higher highs and invalidate that analysis.

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