Silver Market Update

By: Clive Maund | Mon, Apr 4, 2005
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Silver rallied as expected last week from an oversold position, having first dropped back to the $6.85 area, but turned sharply lower on Friday. With a limited dollar rally to the 85 - 85.50 area now in prospect, it is likely to dip back to the $6.60 - $6.80 area over the short-term. As with gold, however, a break of the uptrend line going back nearly a year, will not be viewed as serious - especially because this is believed to be a heavily manipulated market, vulnerable to engineered shakeouts.

Over the longer-term, the dollar is expected to stall beneath the heavy resistance in the 85 - 86 area and its larger downtrend reassert itself, taking it to new lows, as detailed in the Gold Market update. This development should see silver break out upside from the huge symmetrical triangle that has formed over the past year, and which is clearly visible on the accompanying 3-year 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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