Many investors could recall that silver price broke major support at $26 in April 2013.
However for those who are familiar with technical analysis, it is no big surprise. This is simply to completion of Triple Top Formation. The definition for Triple Top Formation is:
When price that is trending upward tests a similar level of resistance 3 times without breaking through. Each time price tests the resistance level, it falls to a similar area of support. After the third fall to the support level, the pattern is complete. Price will falls through the support; the price is then expected to move in a downward trend.
The movement of silver price fits perfectly into Triple Top Formation definition. First we saw silver price was trying to test resistance level at $36 for 3 times but failed to break through.
Then, price did fall to the similar support at $26
The final indication is to break through the similar support at $26 to complete Triple Top Formation. When I saw the 3rd top, I have advised some of my members to stop buying silver (in the short term) and wait for silver price to go below $26 before start buying again. The breaking of major support at $26 did not come as fast as expected but it did eventually come in earlier this year April 2013.
Now, the Triple Top Formation is over. What I want to show you NEXT is, how can we take advantage of current situation. The previous resistance is the current support. We need to identify the strong resistance in silver price history to determine current support. Determining such support would give us indication when is a good time to buy silver at a potential bottom.
We could notice silver price was acting as resistance level at $19 in late 2009 to early 2010. Few weeks back, silver price hit $18.18 and was supported (did not move further lower). We have potentially hit the bottom of Triple Top Formation.
I can’t promise this is the ultimate bottom for silver price but I did personally started buying silver again in early July 2013 (once silver price was around $18 – $19). Let’s hold tight to our PHYSICAL silver, wait and welcome the next bull run.
If you have been waiting for the perfect timing to enter into silver investment, this might be the time you have been waiting for.
In the eBook: Practical Guide For Investing Silver In Malaysia you will find out a list of trusted dealers whom I personally buy from. You can buy from them confidently without worrying buying from the wrong type of dealers. The eBook will guide you step by step to complete your silver purchase order.