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
US Bond Market Panic Continues Towards May Expected Japanese Rate Hike Volatility Spike - 24th April 25
Stock Market Tarrified as President Dump Risks Turning Recession into Stagflationary Depression - 21st April 25
President Dump Delivers BEAR MARKET - Stock Market Battles Between Order and Chaos - 7th April 25
Stocks Bull Market End Game Bear Start Strategy - 20th Mar 25
Gold and System Collapse: Charting the Bank Run of the Mighty US Dollar - 20th Mar 25
Tesla's Troubles — Is it Musk or is it More? - 20th Mar 25
The Stock Market Bear / Crash indicator Window - 9th Mar 25
Big US Tech Stocks Fundamentals - 9th Mar 25
No Winners When The Inflation Balloon Pops - 9th Mar 25

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Silver Breakout Targeting $14 Resistance

Commodities / Gold & Silver 2009 Jan 26, 2009 - 06:45 AM GMT

By: Clive_Maund

Commodities Best Financial Markets Analysis ArticleSilver`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.

By Clive Maund
CliveMaund.com

For billing & subscription questions: subscriptions@clivemaund.com

© 2009 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