Monday, January 14, 2013

Silver Chart

Silver finally managed to get a close above that stout resistance level at the $31 level. On a day  in which the platinum/palladium group metals were all moving to the upside, it is refreshing to see the grey metal finally going along for the ride.



The ideal technical price action now would be to see additional upside movement up and away from this level without surrending its gains and falling back down below $31 again. Even at that, you can see the very short term uptrend that has formed in silver over the last week+ of trading.

A sharp push now through the $31.50 level will spark some decent short covering and serve to bring in new momentum based buying.

We will see if silver can do just that.

Downside support remains slightly above the $30 level.

3 comments:

  1. Hello Dan
    apparently COT readings for oil and copper are both bearish, is this cause for concern in terms of silver, or is it more likely to move with gold now; I've read your comments about soy beans before; thanks?

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    Replies
    1. Mary F - I am not sure why the COT for oil and copper would be regarded as bearish but that being said, the CCI, or continuous commodity index, is a good indicator of where silver will go. Incidentally, soybeans had a huge up day today as did the CCI....

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    2. I think silver will go to $31.50 very soon..

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