Silver Prices Sparkle Once Again
Source: Bob Kirtley, SK Options Trading (11/9/10)
"We are on course for $30/oz. silver. . ."
Silver prices are just sparkling as this chart clearly shows with today's advance adding $1.02 for a gain of 3.82%. So, put on a big smile and walk around your place of toil and add a little cheer to everyone's day, share your success with them, add to the feel good factor, it just might give them a lift, too.
Well, the technical indicators are once again slapping up against the ceiling, suggesting a breather could be in the cards. The RSI is standing at 81.10 and under normal circumstances we would be looking to exit as this chart is suggesting. However, if you study the chart, you can go back to early September and see that the RSI was suggesting an overbought situation then and, at that time, silver prices were around the $20/oz. level. So here we are at $27.74/oz., the point being is that the fundamentals are overriding the technical indicators, at least for the time being. This is something that by our actions and our words we said would happen. We are on course for $30/oz. silver and we expect it to get there fairly soon as the economic climate has not suddenly improved and the actions of our political masters continues down the road of currency destruction, which is a boost for all hard assets.
Masters of the universe they are not, so hang on to your core holdings, things are going your way and you need to let the winners run. Also try and relax, the best decisions are usually made by those with a cool head.
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