SILVER Daily Chart Sideways Symmetrical Triangle

Silver price is moving out sideways thru a symmetrical triangle, now at the apex, so price has to decide which way to commit. The vertical side of the triangle is about 8 bucks so the move will be significant. A break out from the top rail at 33 would target 33+8 = 41. A collapse thru the bottom rail at 32 would target 32-8 = 24.

Note the decreasing volume participation over the last few months conflicting with continuous media stories about high demand. The sideways triangle patterns can exhibit fake out moves at about the two-thirds distance across the triangle, so the breakout above the top rail in early November was suspect, then, sure enough, price retreated back inside the triangle and collapsed out the bottom rail. Typically this move results in price failure, but, price recovered and tucked itself back up inside the triangle again. Thus, here price sits and it must decide now.

Price is between the 20 and 50 MA's so use that as an indication of committment as well, either up thru 33.23, or, down thru 32.56. The 200 day MA is flattening out which indicates that price is running out of gas. Watch the RSI, stochastics and money flow 50% levels for indications on price committment. Projection is for failure out the bottom of the triangle and lower prices moving forward. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.

Note Added 12/2/11 at 10:05 AM:  Note that silver is now printing 33.31, a smidge above the 20 MA, which is a small feather in the bulls cap.

Note Added 12/2/11 at 1:46 PM:  Silver is now printing 32.65 moving towards the 50 MA support at 32.56 so take back that feather from the bulls cap; price is still deciding which way to move.

Note Added 12/2/11 at 5:51 PM:  Silver closed at 32.686 remaining between the 20 and 50 MA's, as well as inside the sideways triangle. Silver will make a big decision next week.