• 847 days Will The ECB Continue To Hike Rates?
  • 848 days Forbes: Aramco Remains Largest Company In The Middle East
  • 849 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,249 days Could Crypto Overtake Traditional Investment?
  • 1,254 days Americans Still Quitting Jobs At Record Pace
  • 1,256 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,259 days Is The Dollar Too Strong?
  • 1,259 days Big Tech Disappoints Investors on Earnings Calls
  • 1,260 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,262 days China Is Quietly Trying To Distance Itself From Russia
  • 1,262 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,266 days Crypto Investors Won Big In 2021
  • 1,266 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,267 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,269 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,270 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,273 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,274 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,274 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,276 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 January 25th, 2009.

Silver`s break higher on Friday was an important positive technical development that has cleared the way for a rapid advance towards the resistance in the $14 area. This move negated the potential small Head-and-Shoulders top pattern that appeared to be forming and makes clear that the trading range that had developed following the breakout from the severe downtrend early in December was a zone of consolidation.

There are several factors in play that point to an acceleration in silver's advance. One is that it is advancing away from its rising 50-day moving average and getting well clear of last year's savage downtrend, thus allowing sentiment to steadily recover following last year's heavy losses. Another is that the rising trend of the MACD indicator shown at the bottom of the chart is a sign that silver is gathering upside momentum. However, the 200-day moving average is still falling overhead which is a restraining factor reinforcing the resistance in the $14 area, and last year's severe downtrend has of course created considerable overhanging supply concentrated especially in the resistance zones drawn on the chart. These are factors that will challenge silver on the way up as its advance progresses and accelerates. Nevertheless, these are not formidable obstacles, especially when you bear in mind that silver tends to lag gold and to perform best towards the end of major gold uptrends - gold is just powering up for a major uptrend now and as its uptrend progresses we can expect silver to continue to accelerate. In addition the dollar is now looking acutely vulnerable to a steep drop as set out in the Gold Market update, and if this comes to pass it will be an additional driver for silver gains measured in US dollars.

As usual, many of the factors discussed in detail in the Gold Market update, such as the dollar outlook already mentioned, are equally applicable to silver, and are thus not repeated here. Readers are referred to the Gold Market update for this information.

 

Back to homepage

Leave a comment

Leave a comment