Chart is courtesy of marketclub.
Marketclub - Orko Silver Corp. Trend Analysis.
Today I included a chart with Bollinger bands to show the potential of a breakout to above 1.00. If you take a look at number 1 on the chart. That's the moment where the Bollinger bands started getting wider.
When Bollinger bands are close together that means a period of low volatility in stock price. When they are further apart a period of high volatility in price is shown.
One of the rules some strictly technical traders use is to exit their long positions when the candle leaves the upper Bollinger band and tries to dip under the center one with a red candle. That would be around number 2.
Lots of different ways to use Bollinger bands.
If you want to see more about Bollinger bands, there's a youtube video with an easy lesson to follow for traders not familiar with this technical aid. Also explained is that Bollinger bands are not to be used as a single indicator but always in conjunction with other technical tools like stochastics or RSI (Relative Strength Index).
Anyway, I'm sure most will notice the similarities between point 1 and where we are now. Since September the price volatility has significantly increased and the technicals surrounding Orko's chart are still really bullish. About 260.000 shares traded today which is still a decent volume.
chart on kitco.com
For a break above 0.80 to have occurred I'm guessing gold should have done a bit better than it did on September the 3th. For the smartypants amongst us, yes I know, Orko Silver plans to mine silver and I'm looking at gold. Go figure. I'm sure most will understand my collaboration to the gold side :-)
And September still being the best month for gold and silver we should still expect a continuation of the current up trend.
Monday is labor day so no stock-market for YeOldGoldNugget :-(
Hope I don't have to go into rehab again after last time. Victoria day, pffft.
YeOldGoldNugget's links of interest
- Seven market lessons guaranteed to improve your trading
- 5 Markets & 5 Ways To Improve Your Trading Profits In the coming years ahead
- 90 Second Gold Lesson (Video)
![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
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