Tuesday, October 27, 2009

Orko Silver Chart October 27, 2009

Orko Silver Daily Chart
Orko Silver Chart October 27, 2009
Chart is courtesy of marketclub.
Marketclub - Orko Silver Corp. Trend Analysis.

We basically have the same situation we had yesterday. Orko Silver opened lower at 0.92. There was some heavy selling going on in the morning hours with prices ranging between 0.91 and 0.92. I counted about 120K being sold. That went on until a little before eleven cause that is when the first buying of the day started. A couple of bids and blocks around 0.92, 0.93 and 0.94 by TD Securities.

Right after that UBS Securities Canada Inc. turned up as a seller bringing the price down to about 0.91, that was around noon. However the afternoon was a whole different ballgame! Buying started around one pm and moved the price to 0.92. A couple solid blocks of 10K, 7.5K and a couple more brought us into a close of 0.940 0.000 (0.00%). The entire afternoon saw no more sellers.

So again a pretty good day for Orko Silver all considering. Very very good day, again confirming Orko Silvers share price suffers less of a bumpier ride during this current correction. Again, the more we hold around these levels the bigger a potential leg up will be. I call that the slingshot effect. This happens when during a correction, a stock has already built enough fundamentals and seen plenty of buying to hold between a certain range.

When this correction in gold and silver is over and everyone who had to cover has covered then not only will buying start again, mostly everyone else who sees the chart of Orko Silver will see the trading range and will try to get in before we head to even higher prices. Like a steam train this is, slow starter but once she gets going you try to stop a 150 ton pile of moving silver!

After this correction in gold and silver is over we will be in my opinion definitely be ready for the next leg up and getting us above and beyond 1.00. That correction might be over this week or early November, depending on when the dollar gives up after its last final rally before heading down and in the direction of the first real stop...the 72.00.

That is when gold will shine again. I'll you this, gold will in my opinion first see 1020 before it sees 1100. That goes the same for silver which could see a bigger down move percentage wise than gold as with silver it may very be more violent than with gold.

When I look at the daily chart of silver the short term picture indeed does not look very bright. However looking at a weekly chart of silver the story changes completely. I will post the charts with a couple comments but I will first let the chart do the talking on this one.

Silver Spot Weekly Chart
Silver Spot Weekly Chart
Chart is courtesy of marketclub.
Marketclub - Silver Spot Trend Analysis.

That crossover you see there of the 50 MA and the 200 MA is not just a crossover, in TA that has a name. It is called a golden crossover. Now, doesn't that sound nice? Now, looking at the naming, would you say that is bullish or bearish crossover then?

Now, if it were called a zinc crossover then I would know the answer...so yeah, that is definitely a bullish sign. It happens when the 50 MA line crosses above the 200 MA line.

So, that does bode well going into November. I don't know when short term we will get a bottom in silver. This could turn up tomorrow or it could go and look up 16.00 again which was the high of June.

Silver Spot Daily Chart
Silver Spot Daily Chart
Chart is courtesy of marketclub.
Marketclub - Silver Spot Trend Analysis.

As long as our White Knights keep silver above 16.00 then the trend will remain upwards. I don't really think silver needs that big of a correction before heading further up. Let us wait and see what happens, there still is a downward force working which like I said earlier could take us into November. By then all the apples have been shaken from the tree and we can begin our next cycle again.

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1 comment:

  1. Looks like the 16.00 for silver and the 1020 for gold will be on the boards rather sooner than later.

    ReplyDelete

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