• 288 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 290 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 690 days Could Crypto Overtake Traditional Investment?
  • 694 days Americans Still Quitting Jobs At Record Pace
  • 696 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 699 days Is The Dollar Too Strong?
  • 700 days Big Tech Disappoints Investors on Earnings Calls
  • 701 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 702 days China Is Quietly Trying To Distance Itself From Russia
  • 703 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 706 days Crypto Investors Won Big In 2021
  • 707 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 708 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 710 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 710 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 713 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 714 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 714 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 716 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

Silver Market Update

There is strong circumstantial evidence - furnished by a number of very bullish silver stock charts - that silver is eventually going to break substantially higher, despite the current whipsaw action, which was predicted in the last update.

On the 2-year chart we see that silver broke down marginally from its long-term uptrend late in June, but has, so far at least, found support at the important $6.80 level. As pointed out in the last update, because of the late breakout from the large triangle formation, erratic action is to be expected in the near-term, and short-term traders should trim positions accordingly as overbought or oversold conditions develop.

The 6-month chart shows recent action in more detail, in particular the late June breakdown, which was considered probable in the last update, due to the high Commercial short position. In that update it was stated that key support at $6.80 needed to hold, it has, so far, and is currently generating a bounce. An encouraging development at this time is the significant reduction in the Commercials' short position, shown further down the page.

Until the price succeeds in breaking well clear of the large triangle shown on the 2-year chart and establishing a definite trend, we can expect to see erratic behaviour, as whether it likes it or not, it will soon be forced to leave behind the "security blanket" of its large triangular trading range. Downside is believed to be limited, because silver is cheap in inflation adjusted terms, while upside is relatively unlimited. A break above the resistance around last years' highs in the $8 - $8.30 area will be a major technical event that should usher in a vigorous uptrend. As pointed out at the top, this is what a number of silver stocks are indicating is going to happen.

Back to homepage

Leave a comment

Leave a comment