Saturday, September 12, 2009
Silver's RSI at Level that has Previously Marked Major Tops; September 12, 2009
Above is the daily silver chart showing that the RSI is currently at a level that has previously marked an area what it has formed a major top. Many of the previous tops and declines have eventually led to complete reversals, but with wave 3 down coming soon in the stock market, precious metals should tank to new lows for the year with that collapse. So this "topping" signal is most likely not just an ordinary drop and rally that has occurred. It's most likely signaling that silver's major top and 50% decline is near.
We still need to see a sharp selloff and break down to new lows to confirm any top, but it's important to note that with the RSI reaching overbought territory, the level that has previously market major tops, and with optimism in the 90% bull range, the next move of significance is down. And it will be down big. The euro, gold, silver and the stock market should all top and reverse around the same time, and all those markets appear near that top. I'm waiting for confirmation.