Amazing! Silver Follows Historical Pattern to a "T"

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Note: Un update was made to the PFS Group silver composite due to a revision made by one of their in-house analysts.

With almost perfect precision, silver corrected right down to its historical support level as shown by the following composite I featured in “Data Suggests Silver Correction Ahead” a couple weeks ago:

silver composite 9/06
Source: PFS Group

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As you can see, it was forecasting a steep correction and possible support right around $30, which is where we find ourselves currently.

silver composite 9/23
Source: PFS Group

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The funny thing about technical analysis like this is, it doesn’t matter what the causes are for why something will move in a certain direction in the future, i.e. raised margin requirements, global sell-off, rising dollar, etc., it just says that there’s a high probability it will...according to history, that is. Of course, that flies in the face of efficient market theory and all that, but then again, who believes that stuff anymore?

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About Cris Sheridan