Here we can see how the short term uptrend support got heavily sold in Thursday's bear market but the interesting thing is that it bounced just above the $1265 support covered in the weekly chart from 27th May.This level ought to be at least a medium term low as there's a complete wave sequence down to this level and it was also the trading range target per the above post. There's an RSI bullish divergence to help and silver also hit it's main target of 1950 on Friday too. Original link...

Almost a month on from the last post on silver and our target of $19.50 has been hit. The daily chart below shows the bullish RSI divergence and, perhaps more interestingly, how the RSI downtrend played a perfect role in providing sell/short points. The key thing to look for now is for that RSI to break out of it's downtrend. That ought to confirm a decent move upwards in price as long as it occurs before the price breaks out of it's downtrend (not shown). Note also that gold has also hit an important target level on Friday too. Original link...

There wasn't any sign of a convincing bounce at the 141p 61.8% Fib level so it seems to me that the most likely option remains wave C down from 260p. There is an alternative big picture count which has the whole move from the original 203p high as a very big correction (including the 450p high) but we'll leave that for now as the only additional possibility that option gives us is that of a new low below 87p as far as I can work out.Had this been wave 2 of a new uptrend I'd have expected more volume and a reversal candle pattern to form at this level but neither occurred and last week's weekly candle looks quite bearish.So where does that leave us? Well, it's still possible that the new uptrend is on but it will need to bounce from the off on Monday and will need to...

Here's a simple daily chart showing why I thought that 141p was a key level (aside from it having been instrumental in the past).There are multiple supports here: the short term uptrend support from the 126.3p low; the support from the drop off the 159.5p high; the half-way mark of the big bull candle and the 61.8% Fib all converge at this price today.What I'm looking for now is a close around the 145.5p mark which would give a hammer at this key level. I'd then be looking to see how that's followed up on Monday.There's nothing particular in the RSI to note but OBV (on balance volume) has flat-lined during this drop rather than following price down which supports the observations there there has been some quite buying in the background. Should be an Original link...

Following on from the discussion today on the previous blog entry, here we have a possible inverse head and shoulders formation as identified by Gary. This is, of course, conditional upon price returning to the "neckline" and then breaking through.I've shown here how we would calculate a target from such a pattern - we take the difference between the top of the head and the neckline (vertically) and the plot that from the breakout point (which I've just put there for illustrative purposes).I've also drawn a horizontal line which could be another iHS but this one seems unlikely to me.I'm not sure of this is exactly the form Gary was talking about but I'm sure he'll enlighten us later on.From my own point of view, I'm not a big fan of H&S formations unless they're really clear and the neckline is fairly horizontal. Anyway, we just about hit the 61.8%...