Silver Market Update

By: Clive Maund | Fri, Mar 4, 2005
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Although at first sight silver looks short-term toppy, when one takes into consideration the outlook for gold and the dollar, the action over the past few weeks is viewed as a healthy period of consolidation, following the strong advance during the first half of February. Price action on the 2nd of this month was bullish, revealing significant underlying support, and moving averages are now in bullish alignment, increasing the likelihood of further significant gains.

When gold broke strongly higher about 10 days ago, silver didn’t really join in. This was because it had already risen a lot earlier in the month, and needed to consolidate those gains, a process that has continued up to the present.

Another rally to challenge the December highs at about $8 looks increasingly likely in coming weeks, especially if the dollar breaks below its "neckline" support at 82 on the index - see Gold Market update to view the dollar chart.


 

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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