Our Adaptive Dynamic Learning (ADL) predictive modelingsystem is suggesting that Silver is currently well below the projected ADLprice level. We believe the currentpricing pressure in Silver is related to global central banks attempt toregulate precious metals prices over the past 24+ months. We believe the upside move in Gold willeventually roll into Silver and the ADL predictive modeling system issuggesting Silver is currently 34% undervalued.
Our ADL predictive modeling system is capable of identifyinghighly probable price outcomes in the future by tracking and mappinghistorically accurate similar price DNA patterns. The chart below shows exactly why we believeSilver is setting up an ADL price anomaly where a big upside price reversionshould take place over the next 30 to 90 days.
It is difficult to attain an exact date for the reversionmove, yet we know that the ADL predictive modeling system is suggesting Silvershould be trading above $17 right now. Over the next 4+ weeks, the ADL suggests price should be above $18. The current price, near $13.95, is well belowthese ADL predicted levels. Thus, webelieve a price reversion process will take place to drive the price of Silverupward toward the ADL predicted levels.
Now, if you take a look at our Silver Cycle Momentum chart below you can see that the current price of silver is just starting what looks like a new uptrend.
We believe the current upside price move in Silver is just the beginning. This may, very well, be the last time we’ll see sub $14 levels for quite a while in Silver. We believe skilled traders should be taking advantage of these historically low levels right away to prepare for the upside price move. Keep in mind the market does not move straight up and while I am bullish this me not be the exact time to by silver.
Become a technical trader by watching my daily analysis video each and every morning before the opening bell, and take the same trades I do with my trade alerts at the Wealth Building Newsletter.
Chris Vermeulen
www.TheTechnicalTraders.com
Chris Vermeulen has been involvedin the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader,and is the author of the book: 7 Steps to Win With Logic
Through years ofresearch, trading and helping individual traders around the world. He learnedthat many traders have great trading ideas, but they lack one thing, theystruggle to execute trades in a systematic way for consistent results. Chrishelps educate traders with a three-hourvideo course that can change your trading results for the better.
His mission is to help hisclients boost their trading performance while reducing market exposure andportfolio volatility.
He is a regularspeaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chriswas also featured on the cover of AmalgaTrader Magazine, and contributesarticles to several leading financial hubs like MarketOracle.co.uk
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