Although silver could spike higher towards $8 from here, the odds favour a
reaction short-term, not merely because of the outlook for gold and the dollar,
but for its own reasons as well. Although the price continued incrementally
higher last week, it has clearly been running into resistance towards $7.50
and upside momentum has waned. The RSI indicator is now at a normal overbought
extreme, and the MACD indicator is approaching its normal overbought extreme.
After the sharp rise earlier in the month it would be reasonable for the price
to react back somewhat from the current overbought level, towards support in
the $7.10 area, which would allow the short-term overbought condition to unwind
and the moving averages to move into a more bullish alignment.
Otherwise, the
sharp advance in the middle of the month augers well for continued progress
after an expected short-term reaction.
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.
Circle Us