• 717 days Will The ECB Continue To Hike Rates?
  • 717 days Forbes: Aramco Remains Largest Company In The Middle East
  • 719 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,119 days Could Crypto Overtake Traditional Investment?
  • 1,124 days Americans Still Quitting Jobs At Record Pace
  • 1,126 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,129 days Is The Dollar Too Strong?
  • 1,129 days Big Tech Disappoints Investors on Earnings Calls
  • 1,130 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,132 days China Is Quietly Trying To Distance Itself From Russia
  • 1,132 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,136 days Crypto Investors Won Big In 2021
  • 1,136 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,137 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,139 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,140 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,143 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,144 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,144 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,146 days Are NFTs About To Take Over Gaming?
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

Silver Market Update

Originally published June 5th, 2008.

The positive implications of silver's mid-May breakout from a pronounced bullish Falling Wedge downtrend channel have by no means been invalidated by the subsequent rather savage reaction that has got a lot of traders fooled into "thinking grizzly". In the 1st place a post breakout reaction back to test support at the top of the downtrend channel is quite normal, and secondly the reaction has brought the price back down again to the zone of strong support shown on our 1-year chart, which is now being bolstered by the 200-day moving average rising into it. It is thus highly unlikely that silver will drop much further from here - on the contrary, everything is now in place for a major uptrend to develop soon, as is the case with gold. Due to the strong convergence of the boundaries of its recent downtrend channel, silver looks set to outperform gold on the next uptrend, not that gold looks weak here.

Despite remaining within the confines of its Falling Wedge downtrend channel until mid-May, silver has actually been basing since immediately after its mid-March plunge, and can be seen to have been trading in a rectangular range bounded by the support and resistance shown since that time. With the price now near the bottom of the range, silver is thought to be at an excellent entry point here, as it should soon break above its 50-day moving average, a development that should quickly lead to a very favourable price and moving average alignment, with the price above a rising 50-day, which is above a rising 200-day, a circumstance which typically exists at the start of a major uptrend.

 

Back to homepage

Leave a comment

Leave a comment