Silver- Squeeze (Update)!

In my last blog post, I predicted a short squeeze in silver was about to begin.  Looking at this week's price action and VC technical analysis, I'd say my analysis was correct and this move has just begun.  Let's see what the charts have to say. (learn more about what we do)

 

The chart above is the Monthly VC.  This chart illustrates just how powerful this break out is in the silver market.  Whenever you take out the S2 with this type of conviction in price action, it is a strong indication that price will continue to show follow through and a major trend change has occurred.  This type of price action is very rare even on the Daily VC Momentum Indicator.  So, seeing this type of action on The Monthly VC Momentum Indicator gives me confirmation that the long term trend has switched from bearish to bullish.  I am expecting new all time highs in the silver market between now and the end of 2014!

The Weekly VC Indicator remained bullish throughout the week and encountered short term resistance at the S1 level.  It wouldn't surprise me to see a short term pull back towards the end of next week and possibly into the middle of September.  We are in the early stages of the continuation of a screaming bull market in silver and gold, so I am not selling my current long term holdings.  I do plan on adding to these positions on the next pull back.  I will keep all my readers informed.


Our subscribers at Equity Management Academy would now be up over $100k for the past 10 months just simply following what we do in the room.  They are optimally positioned on short term and long term time frames and are making some serious cash!

 

To learn more click here:  Live Trading Room

thomas@ema2trade.com

www.ema2trade.com

TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Silver- Squeeze!

I believe the bottom in silver is in for now.  A short squeeze is now inevitable.  Based off VC technical analysis a squeeze is getting ready to begin.  Our subscribers at Equity Management Academy would now be up over $100k for the past 10 months just simply following what we do in the room.  They are optimally positioned on short term and long term time frames and should make some serious cash over the months to come.  Lets get right to the charts!!

The chart above is the same chart that I posted on June 30th.  On the 30th, I highlighted this chart warning people that a short squeeze was coming.  I explained that we were in the early stages.  During this time the bearish sentiment was at an absolute extreme and these statements were going against what the mainstream would have you believe.  A little over one month later now,  the VC numbers has held true and it appears to have given us an optimal entry point for what appears to be a major bottom in the silver market.  Now lets look at the weekly charts.

This chart shown in Heikin Ashi demonstraes the bottom in silver being formed.  The last four weeks have posted green Heikin Ashi bars signaling a change in trend is occurring.  This, along with the monthly VC, gives us strong evidence that a serious bottom is forming.  The RSI is pointing up and is giving us an indication that the energy beneath this market is building.  This indicates a big move is coming. Now lets look at a daily VC chart.

This is the chart that was posted on Thursday, August 9th 2013.  If you are a subscriber you would have had access to it (subscribe here).  It is not all that often that the S2 or B2 levels are broken on the VC.  Usually this is a strong indication that energy beneath the market was able to push the market to the next fractal and essentially break the Code.  This is rare and the fact that S2 was broken is another major buy signal.   

We are currently up over $100K in 10 months Trading The Code... LIVE!! 

To gain access click here:  Live Trading Room

thomas@ema2trade.com

www.ema2trade.com

TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.