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.
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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