Silver Market Update

By: Clive Maund | Sun, Feb 20, 2005
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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.


 

Clive Maund

Author: Clive Maund

Clive Maund,
CliveMaund.com

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.

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