Silver Market Update

By: Clive Maund | Mon, Jul 10, 2006
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The last Silver Market update was bullish, but silver has performed more strongly than expected in the intervening period, and like gold, is now vulnerable to a short-term reaction, having risen into an area of strong resistance rather quickly. Most of the arguments relating to gold set out in the Gold Market update apply equally to silver, and there is thus no need to repeat them here.

Silver has slowed beneath a zone of heavy resistance in the $12 area which is reinforced by the falling 50-day moving average being about at this level. Even if it first rallies a little more, it is expected to get knocked back soon towards the support near the upper boundary of the small base that formed in June, i.e. it is likely to drop back to the $10.80 area. It will be regarded as a buy here as the upleg of the past week is viewed as the probable start of a new intermediate uptrend. As with gold, only in the event of a liquidity crunch and associated interest rate spike will the overall bullish pattern abort.

 


 

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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