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:
Source: PFS Group
As you can see, it was forecasting a steep correction and possible support right around , which is where we find ourselves currently.
Source: PFS Group
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?
