Half Empty or Half Full

Greetings from Washington, D.C. I thought I'd post the following chart of silver with the question, is the glass half-empty, or half-full?

I think it's hard to say. Thursday was a brutally bearish day. Friday was very bullish. Those horizontal lines I've put on the chart are "Fibonacci Retracement" lines -- they show where silver is likely to end up in a pullback.

You can see that 11.50 and 10.60 are likely levels. And that's what many traders were betting on after Thursday's action. But 12.58 -- right around where silver settled on Thursday -- is a .25% Fib retracement.

If that's all the pullback we're going to see, silver is even hotter than I expected.

Then again, let's see how things go over the weekend. I'd like to see one more test close to the lows before I'm ready to turn off the yellow caution light.

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