The arguments set out in the Gold Market update apply equally well to silver
at this time.
Silver is not at such an obvious support level as gold at this juncture. An
experimental 300-day moving average has been applied to the silver chart as
with gold to see if we have a fit. In the past it fits quite well, as we can
see on the 5-year chart, although the standard 200-day works better on the
recent reaction.
Like gold, silver is expected to stage a tradable rally soon from about the
current level, which, barring an attack on Iran, is likely to get up to about
$12.50 before it rolls over again. The parallel stop loss point to that for
gold would be failure of the support at $9.50, but as this would result in
an unacceptably large loss for anyone buying around the current level, it would
make more sense to cut losses in the event that it breaks below the recent
low at $10.50, despite their being some risk of being whipsawed out.
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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