Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver Continues to Underperform, Failing to Clear Strong Resistance

Stock-Markets / Gold and Silver 2010 May 09, 2010 - 03:35 PM GMT

By: Clive_Maund

Stock-Markets

Best Financial Markets Analysis ArticleYou have to feel a little sorry for silver. It has been suffering from an identity crisis - it can't make up its mind whether it's an industrial metal or a Precious Metal. You could see this on Thursday when as gold surged and the stockmarket tanked, it hardly moved. It was like a bewildered child at a country crossroads not knowing whether to follow its big brother gold and take the high road, or to follow the man with the candy and take the low road.


There is an old saying that blood is thicker than water , so after a sigh silver ran to catch up with its brother on Friday. It's nice to have a story with a happy ending, although actually what we are looking at here is a beginning, the beginning of the next stage of a journey to lofty heights.

On its 3-year chart we can see that after its recovery last year from the panic lows of 2008, silver's advance slowed as it approached and ran into a wall of overhanging supply near its early 2008 highs and it has effectively been in a large trading range since as far back as last October. It's 3-year chart is very similar to the 3-year charts for the PM stocks indices, and for both silver and the stock indices the resistance approaching and at the 2008 highs is a major hurdle, which if overcome should lead to a strong uptrend. While the risk that it is Double Topping remains until this resistance is overcome, the strongly bullish action in gold and the completing base patterns in many individual quality junior silver stocks strongly suggest that it will be, and soon. The current tight bunching of the price and the bullishly aligned moving averages certainly puts silver in position to break out upside soon, and we should note that such a breakout is likely to be rapid and dramatic, and will take a lot of traders by surprise.

The 6-month chart shows recent action in more detail. On this chart we can see how silver has been repeatedly backing off from the resistance in the $19 + area. We can also see the rather alarming drop last Tuesday, Thursday`s indecisive rally when gold soared and how it played catch up on Friday with a bullish strong rise from the vicinity of its 50-day moving average.

By Clive Maund
CliveMaund.com

For billing & subscription questions: subscriptions@clivemaund.com

© 2010 Clive Maund - The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maunds opinions are his own, and are not a recommendation or an offer to buy or sell securities. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis.

Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications.

Clive Maund Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in