Silver Market Update

By: Clive Maund | Mon, Mar 21, 2005
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Although looking superficially toppy, and although it is clearly vulnerable to a sharp intra-day dip towards $7.00, the broader picture is that silver appears to be consolidating February's sharp rise, prior to launching an assault on the resistance in the vicinity of the December highs in the $8 area.

The action of the past 6 weeks or so has allowed the overbought condition that had developed by the middle of February to unwind substantially and the moving averages to pull up beneath the price, thus increasing upside potential.

The outlook is therefore viewed as positive, which fits with the outlook for gold and the dollar. With significant nearby support, any dips in coming days to the $7.00 - $7.20 area would be regarded as a buying opportunity.


 

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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