What do you see when you look at this silver chart?
Bullion.Directory precious metals analysis 4 September, 2014
By Terry Kinder
Investor, Technical Analyst
I sat on the bed. I looked at the Rorschach blot. I tried to make it look like a spreading tree, shadows pooled beneath it, but it didn’t.
What two people see when they look at this silver chart may be different.
It would be nice if technical analysis were purely scientific, but it isn’t. Looking at the silver chart above, you will notice labels A, B, 1 and 2. The labels point to somewhat similar looking features on both the 1970’s run up in the price of silver and the latest run. One can make the argument that A and B were both mini-tops that occurred before final blow off tops. It can also be argued that 1 and 2 were spikes up before the price of silver continued lower.
On the other hand, an argument can be made that B and 2 combined are merely the big brother to A and the current drift down is just a pause before a massive explosion in the price of silver. We could analyze the silver chart all day long, apply lines, indicators and make historical comparisons.
In the end, this chart of silver is a Rorschach test.
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