The Silver Price to Surge

By Roger Baettig | October 18 2012 3:51 AM

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Comments on Silver from Mark Lundeen,

Silver’s step sum plot (Red Plot) did a double bottom at 455 on the right scale of the chart, or a -8 day in the Silver since Aug 27 table in the chart’s table, which at the end of today’s trading is now only -6.

If the shorts can’t get silver’s step sum going back down again (more down days in silver than up days), they are in big trouble.

Should we see the price of silver (Blue Plot) break comfortably above $35 in the next week or so, they are going to force me to remove the “FAILED” in front of the bull box, and insert another vertical dashed line closing this box for the second time.

I labeled the bull box as a failed box because I can’t deny that the price of silver broke down on October 4 as its step sum continued to decline.

But for all of the down days in silver since August 27 (22 down days), they didn’t get much for their efforts. They only managed a pitiful -6.50% decline in the price of silver from October 4-15.

If we can believe the “London Trader” in these King World blog posts, and I do, the big commercial silver shorts are in big trouble.

Is Silver the New Gold?