Tuesday, January 31, 2012

Cartel Defends $1750 Gold & $34 Silver With Waterfall Smash

Live 24 hours silver chart [ Kitco Inc. ]Absolutely classic cartel raid in gold and silver today as they attempt to defend $1750 gold and $34 silver. 
Just prior to 10am EST, silver was allowed a parabolic spike through $34, exciting speculators who piled in expecting a rapid move to $35, as the charts indicated a breakout, except that the new longs were greeted by the cartel's hammer, which immediately smashed silver in water-fall type fashion all the way down to $32.86- a raid of nearly $1.50!
The mini-parabolic up move is absolutely classic cartel action as they attempt to suck in new longs which they can then use to add fuel to the water-fall smash as the new longs' stops are taken out.

Live 24 hours silver chart [ Kitco Inc. ]

Gold experienced a similar but less extreme parabolic move higher immediately preceding its take-down.

Live 24 hours gold chart [Kitco Inc.]

The cartel is clearly attempting to defend $1750 in gold, and $34 in silver.  Should silver clear $34, a run to $37 appears likely.