Silver 6.24.11

I know the conspiracy theories on silver. Limited supply, price supression, increased usage, etc. but charts don't lie and only price pays. It's been building a large flag since its recent selloff and while gold was able to retrace almost its entire move, silver was held to 38.2%. A tell for many of us that this flag is not a base, but a bearish continuation pattern b4 breaking lower. As this 4hour chart demonstrates, it broke down out of its flag, rode trendline resistance, testing it for the last two weeks before the bulls finally began to give in sending prices lower. It's my belief that gold/silver have gotten a lot of their bid over recent months, due to sovereign debt concerns; more recently Greece. With the Greek Prime Minister winning his confidence vote this week, some longs rang the register. Furthermore I feel that once the hold their Parliamentary vote next Tuesday on austerity and bailout measures, worries will be lessened and gold/silver will selloff even further. This barring any unforeseen fears rising in Italy, Spain, Ireland and Portugal. I would place my stop above yesterdays high, take a partial early Tuesday and see what shakes out with the rest. The PIIGS aren't out of the water, but this near term Greek fear is almost over. Best of luck

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Silver 6.24.11

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