View Full Version : How to calculate a breakout

1st December 2009, 06:04
One of the other reasons I've been forecasting a very large move in silver is how breakouts are measured. I'm sure many of you have heard that once gold broke out from 1000 that the next target was $1300.00. I'm sure many of you want to know how that number is derived. On the last move up for gold a couple of years ago, it went from 980 to the low of about 680 during the market collapse. Thats a difference of 300 point and when added to the breakout area of 1000 comes out to 1300.00

Silver on the other hand went to 21 and fell a whopping 12.00 from its high to 8.60 at its low. When you add 12.00 to the breakout area of 21.00 you arrive at $33.00. So when $21.00 is finally cleared, $33.00 is the next logical target.

Targets are just that, the markets can go much higher than these numbers but professional traders, even GS and JPM use these principles. Typically you will not have big pullbacks until these targets are reached.

I think the month of December is going to be wild for Silver. Well, heres hoping :)