"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Friday, October 28, 2011

Weekly Silver Chart

Silver had a very impressive weekly performance gaining more than $4 for the week and managing to squeak out a close above the 50 week moving average.

You will note that it still remains below both the 10 week and the 20 week moving averages which continue heading lower so silver is not out of the woods just yet. One would ideally want to see the metal get above both of these moving averages and see the shorter term 10 week turn higher. That would give us a shift from bearish to bullish on the WEEKLY CHART.

Also, note that downsloping line drawn on the chart that comes in very close to the 10 week moving average. That reinforces this level as resistance that the bulls need to overcome.

The MACD has been a pretty good indicator at measuring the direction and "trendiness" of this market nad it has turned up from a deeply oversold zone. While still bearish it is moving in the right direction.

A push by silver past $37 that can hold that level will turn the tide firmly in favor of the bulls and target $40 for starters.

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