Looking at a daily chart of silver, it seems clear that a semi-parabolic top has corrected significantly, from $30 to $25. Now we are back to $27 or so.

Silver is looking strong. For a reasonable and logical analysis of where the price could be headed, see:

[1] http://thetsitrader.blogspot.com/2010/11/how-high-could-silver-go-in-december.html

This makes a very conservative projection around $35. But that does not take into account the ultra-long consolidation that just occurred prior to this current rally.

Plus, there are the underlying factors regarding the short position by JP Morgan and the coming position limits by the CFTC. It just seems like silver can’t be held down the way it used to be.

This week is critical. If gold and silver can hold current levels, we may see some acceleration upward very soon. Gold hitting $1330 and silver $25 last week may have been the lowest prices we’ll see in a long time.