On April 21st I wrote in my article “Market Astrology: Comex Update This Is Not Another 1980” that a correction beginning April 28th would be an attempt to take out silver creating a panic that would resemble 1980. I wrote that the attempt would not work and on May 17th silver would stabilize and mark a turning point for the metal to not return to the former pattern experienced in the 80’s. This was in large part due to Jupiter (rules silver) in transit through the United States 4th house (silver and mining) making a square to Pluto in the 2nd house of banking demanding fair play. It could also mean a large financial institution took delivery or was forced to cover a large short position.
Whatever the case the word was out on the 12th of May as most likely gossip on the floor spread and the selling stopped. A small bounce and then on May 17th another attempt to take the metal through support that again failed just as I predicted.
From that point on May 17th further attempts to break that support have failed setting the metal up for a major move to the upside.
On Jeff’s chart above, the final line of resistance that needs to be broken is a close above 37.91. On July 11, 2011 Mars in Gemini will make a powerful trine to the US Saturn (gold). This could be the punch that is needed to break through 37.91. Keep a close watch on July 11th and July 20-25 for big moves that would take out that line of resistance marking a safe entry point for some of the silver ETF’s. In August I do believe there is a strong potential to break through $50 and keep running higher. Another international financial shock similar to March 4th could send silver through $50 August 20-23rd.
