Silver Parabolas--Resource Investor 8.10.2011

[beefsteak]

Silver Parabolas & Consolidations

Willem Weytjens (http://www.resourceinvestor.com/Pages/Resource-Investor-Author.aspx?key=Willem%20Weytjens) Published 8/10/2011

Please have a look at these charts, that show us what happens after a silver parabola bursts.
(CLICK ANY GRAPHIC TO OPEN A NEW, LARGER WINDOW for further study of graphic)


http://www.resourceinvestor.com/News/2011/8/PublishingImages/8-10-11-pt-1-Silver-2004.png
(http://profitimes.com/wp-content/uploads/2011/08/Silver-2004.png)Chart created with Prorealtime Charting Software


http://www.resourceinvestor.com/News/2011/8/PublishingImages/8-10-11-pt-2-Silver-2004-2006.png
(http://profitimes.com/wp-content/uploads/2011/08/Silver-2004-2006.png)Chart created with Prorealtime Charting Software


http://www.resourceinvestor.com/News/2011/8/PublishingImages/8-10-11-pt-3-Silver-2006-2008.png
(http://profitimes.com/wp-content/uploads/2011/08/Silver-2006-2008.png)Chart created with Prorealtime Charting Software


http://www.resourceinvestor.com/News/2011/8/PublishingImages/8-10-11-pt-4-Silver-2008-2011.png
(http://profitimes.com/wp-content/uploads/2011/08/Silver-2008-2011.png)Chart created with Prorealtime Charting Software


The following chart is an updated version of this article (http://profitimes.com/free-articles/silver-45-48-is-our-target-for-the-next-couple-of-weeks).

We took the 1993 low of $3.50 as the 0% Fibonacci level and then drew several Fibonacci retracement levels, whereby the 38.20% levels coincided with the consolidation levels. We can see that after the three previous peaks, price always retreated at least to the 50% level. The current correction was halted at the 61.80% level.


http://www.resourceinvestor.com/News/2011/8/PublishingImages/8-10-11-pt-5-Silver-bull.png
(http://profitimes.com/wp-content/uploads/2011/08/Silver-bull.png)Chart created with Prorealtime Charting Software


As the charts above show us, when a parabola bursts, it takes time – a lot of time – before the next leg up begins. Will this time be any different, or are silver prices headed for more correction?

Willem Weytjens, originally from Belgium, is currently living in Oslo, Norway. He has been an active investor for over 12 years, forecasting the latest financial crisis, rise in gold & silver prices etc. He recently founded his own company, Profitimes (http://profitimes.com/), enabling him to spend all of his time dealing with financial markets.

[Neuro]

Personally I think things are speeding up. I don't think we have seen the bottom yet, but we will see it within a few weeks. Below $25 is my bet, but I think POS will go above $50 in December to February some time. The Ponce Silver Art bet may turn out to be a real thrilla!

[iOWNme]

Will this time be any different, or are silver prices headed for more correction?Depends on what your definition of 'Correction' is. I say $100/oz in Ag is the correction. It is only a matter of time.