Technical analysis of Steel Vine Investments LLC predicts that silver prices can climb 25 per cent after reaching a “double bottom.”
The Chicago – based chief investment officer for steel vine, said that silver futures for September delivery may climb up to $34.50 an ounce in 3 months after dropping to $26.33 on September 26th and $26.105 on June 28th, 2012. However, the prices on silver futures mounted 5 per cent on June 29th, 2012.
A chart pattern displaying a drop in price, after that a rebound and then another decline to near the same level, this kind of variation is known as a Double Bottom.
Patton said: “We have jumped back from the inflexion point telling us that prices are now headed higher,” and also pointed out: ‘the market will test the first “psychological” level at $30.’
On the Comex in New York, silver futures for September delivery dropped 0.4 percent to settle at $27.499 on July 2nd, 2012. The contract declined 21 per cent in the four months from beginning to end of June.