• 775 days Will The ECB Continue To Hike Rates?
  • 775 days Forbes: Aramco Remains Largest Company In The Middle East
  • 777 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,177 days Could Crypto Overtake Traditional Investment?
  • 1,182 days Americans Still Quitting Jobs At Record Pace
  • 1,184 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,187 days Is The Dollar Too Strong?
  • 1,187 days Big Tech Disappoints Investors on Earnings Calls
  • 1,188 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,190 days China Is Quietly Trying To Distance Itself From Russia
  • 1,190 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,194 days Crypto Investors Won Big In 2021
  • 1,194 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,195 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,197 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,198 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,201 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,202 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,202 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,204 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

Silver Market Update

Originally published August 9th, 2008.

The silver support level in the $16.00 - $16.50 area finally buckled on Friday in the face of the dollar spike leading to a rapid plunge that has taken the price below its 300-day moving average. We can see this development on the 1-year chart, and how it has opened up the risk of a continued decline to the next support level in the $14 area. Although the dollar is already entering extremely overbought territory that is expected to lead to a reversal soon, there is room for it to continue to advance short-term, which would likely lead to gold following suit and crashing its support, and silver dropping back to the $14 area. That said we should keep in mind that it is already deeply oversold and near its 300-day moving average, and could reverse to the upside at any time, in sync with a dollar reversal to the downside.

If silver drops to the $14 area as expected over the short-term it will be viewed as a strong buy as this should mark the end of the downtrend. This would be expected to coincide with Precious Metals stocks bottoming out as signified by the HUI index dropping to the 280 area and the XAU index dropping to the 125 area.

 

Back to homepage

Leave a comment

Leave a comment