From the April 26, 2011 issue of the TMV Swing Trading Report.
May Silver – During Monday’s session (April 25, 2011) Silver surged $3.76 to reach a new contract high at $49.82. The huge price spike was spurred by speculation that China will buy precious metals to diversify its foreign-exchange reserves. The market quickly gave back all the earlier gains as Silver dropped from $49.82 all the way back to $45.65, before finding support and turning higher once again. As of today, Silver has reached and surpassed the upper reaction (red) target line, just one day before the April 26, 2011, projected reversal date that marks the end of the longer-term cycle. The current price action suggests there will be high volatility and Silver could be posting a short-term high and corrective pullback. However, it must be noted that the major target objective remains the all-time record high of $50.35, established in January 1980 when the Hunt Brothers tried to corner the market.
