Technical Analysis and Friday's Silver PlungeFrom last August's high silver and the stocks of silver producers have been, as the technicians say, 'backing and filling'.
That backing and filling was presumed to be done.
All the technicians I read (see Kitco or the Kereport) were predicting a bold move up in silver. They didn't see Friday coming. Which to my way of thinking is no big deal. Unpredictability is the nature of the beast.
I respect technical analysis because it is an effective discipline--emphasis on the DISCIPLINE part--for many traders and investors.
There's a chart out there for everyone. There are minute by minute charts, hour by hour, day to day, month/month, year/year and decade/decade charts.
I'm no technician myself. I'm in SCZ because a silver bull market is underway and the fundamentals of SCZ and silver have led me to a huge position.
So, if as a technician you were caught unawares by Friday's actiion, well so were we fundamentalists.
The markets, as they will, treated both approaches exactly the same.
For myself, i see no change in silver's fundamentals or the operational turnaround at SCZ. Both remain intact.
The charts will pick that up in no time flat.
Cheers.