This is an update to our Silver Window of Opportunity report from December 15, 2012.
In just four trading sessions following the last update, which called for a bearish short-term decline, the price of silver has plummeted nearly 7%, and has raced toward the $29.62 threshold of opportunity previously cited.
Below, circled in blue, we successfully captured the highlighted 29.68 target, (which was good for nearly a 3-pt. move). The updated chart also validates prospects of a previously stated support level at the threshold of our $29.61 - $26.65 downside target window. Trading at $30.20 at the start of trade on 12-27, the market is thus far holding a recent print low of $29.62, just a penny above the target window threshold.
Although a window of opportunity exists through January 18 to accumulate additional physical at lower levels, the much longer-term buying opportunity remains here and now, and all the way down (if you’re lucky) - to the 26.23 level. Once the minor degree 2 wave bases, it’s off to the races toward levels well north of $50 per ounce.
We continue to illustrate support for a near to medium-term upside price target of $47, which shall remain defended so long as the market holds the summer low of 26.07, and maintains closes above the falling green trendline trajectory so noted.
Above the market just north of $34.00, we continue to illustrate a resting 10-pt buy trigger, which is contingent upon price breaking out above the trigger, along with sustained trade and closes above the triggers falling green trendline so noted.
Despite prospects for further declines over the next month, what would kill the extremely bullish long-term opportunity? In the larger sense, nothing - because no matter what paper prices convey, one still needs to have some level of tangible asset assurance. That is to say, one must have a 10-20% portion of one’s net worth in hard money in the form of physical gold and silver.
In the strategic and technical sense however, if the anticipated decline is a smaller degree 4th wave, (which is not a favored view), a print below 28.37 would mark a (ko) or key overlap violation of the first wave up at subminuette degree.
If the anticipated decline turns out to be the favored larger-degree and more bullish 2nd wave, the next sign of failure would occur upon a print beneath the summer low of 26.07, although such a breach would simply imply a more bullish shift-right and lower level terminal base for an even larger degree wave (4) base.
Since fifth-waves tend to extend in the commodity arena, and Silver is at or nearing a minor degree 2- wave or an intermediate (4) wave basing-terminal, one must not ignore the possibility that Silver's intermediate (5) of primary 3 wave can easily extend well north of $80 per ounce.