As Expect Drama In The Silver Market

As expected, the silver market has been characterized by drama on both sides of the trade. The rhetoric from both sides of the nontransparent operation has approached spiritual levels. The message of the market to the dismay of some has not changed.

The energy of the tape accelerated in November 2010 as price began its battle with upper channel resistance. This surge in trend energy, or the kinetic energy should not be ignored. The law of conservation of energy suggests that energy can neither be created nor destroyed; it can only be transferred into one state from another. A lot of paper creation will be required to absorb the massive surge in kinetic energy of the tape. Can the market handle more paper creation? The market, either upside or downside break from the upper channel bands (circled green), will answer that question.

Silver ETF (SLV):