Silver Price Update, 5/27/12: Silver Looking Up as JPM & SLV Conflate
With Blythe and Jamie having Monday off, I am guessing we can expect bullish signals from silver heading into the week of May 28, and this is what we have seen early on in Sunday trading on May 27.
The JP Morgan stock has seen a double-top, the last one in February-April of 2011, and the current one transpiring now, coincidentally (?) in the wake of all the bad publicity the bank has received.
Alongside that last top in the JP Morgan stock price, we saw explosive action in silver. As further resistance is piled on the JP Morgan stock price as increasing amounts of top executives begin to defect amid a flood of negative news for the bank, I suspect we will start seeing strength in silver. JP Morgan will be forced into cash and they will not be able to throw as many shorts at silver as they need in order to keep the price at down.
Unlike last time around when silver had to rise in price considerable before the JP Morgan stock price had the silver price conflated, this time around the silver price does not need to move much in order to take out the JP Morgan stock price. Soon the silver price will conflate with the JP Morgan price, sending signals to the markets to sell JPM and to go long silver, which they will – the symbolism is too familiar to too many market participants. This psychological element will boost silver alongside all of the fundamentals underneath the metal.
On Friday, silver put in a number of higher lows, and now at around $28.50, it looks like silver is looking for support around $28.10. If it can maintain this number – above $28 – then I suspect the price will have seen $26.80 for the last time in this range and we can expect a 75% gain in price before the cartel gets their stuff together and can reorganize to defend higher prices. In the meantime though, barring a massive selloff, SV believes we are looking at a very enticing week that will bring more buyers out than over the past couple months.
It will be interesting to see how strong the coffee is over at JP Morgan on Tuesday and if they are determined to beat the silver price down as a way of saving the outlook on the JP Morgan stock price. JP Morgan might act as a psychopath does, however, and do what it can to burn down the price of silver even as its own house is burning.