Is Silver About to Begin a Parabolic Rally to $60+ OR Collapse to Possibly As Low As $22?

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Is silver about to begin the parabolic rally over $60? My simple answer is, most likely, not yet. [Here’s why]. Words: 324

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Gilburt goes on to say, in part:

The current consolidation is simply just that – a consolidation – before we head to lower levels.

It is my expectation that:

• While it is yet possible that we can see a rally over the next week or two,
• any rally should be capped below the $31.65 level,
• followed by a decline to at least the $28.67 level,
• with potential extensions to the $27.98 and $26.87 regions.

It will be the pattern with which we begin such [a] decline that will tell us at which of the [above] targets silver will find its next level of support. The deeper the decline, the more likely it will be that silver will ultimately be breaking down below the $26 support region.

IF silver drops all the way to the $26.60 region:

• it will likely see a rally from that level but, as long as that rally is corrective in nature, and is capped at the $29.60 region, silver will be heading down one final time. [It] will [then]:
• break down through the $26 support level
• on its way to at least the $25 level,
• with potential extensions down to the $22 region.

For now, [however,] as long as silver maintains below the $31.60 region, it will be heading down much lower.

Conclusion

Any break out over the $31.65 level, which sees strong follow through over $32.65, would be my initial indication that silver has bottomed and we are beginning the rally to over $60 [although] I do not view such a break out at this time as a high probability. Rather, lower levels will likely be seen before the parabolic rally begins but, [that being said,] we have to be prepared in the event that the parabolic rally begins prematurely.

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*http://seekingalpha.com/article/1086771-silver-are-we-ready-yet-for-the-rally-to-60?

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