Let's take a look at silver via SLV on an intra-day time frame.
The extent of the breakdown caught a lot of people off-guard (breakdowns generally do catch late arrivals to the party by surprise), but how often do we ever see a parabolic run like the one silver has had carry on without first suffering a violent reversal?
SLV Fibonacci and Bollinger Bands
The next chart is physical silver, but as so many people have been shut out from trading it due to increases in margin, I will tend to focus more on SLV from this point forward. The two (SLV and physical silver) trade in relative harmoney, though the numbers of each don't match up exactly. As well, physical silver trades more hours in a day and this can throw patterns on SLV off somewhat.
Silver Fibonacci and Bollinger Bands
Physical Silver and SLV
Silver has been on an amazing run and to those who point fingers at bankers and government propaganda for this latest setback, I have one question:
Why would these people have let silver go on a parabolic run like this in the first place, if they can take something down so effortlessly?
