Silver and $XAU Weekly Charts

By: Vitali Logman | Tue, Nov 14, 2006
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On 6 year chart Silver looks very strong, all major trends are UP and intact. 2006 Spring-Summer correction holds above reasonable support lines which are matching to important 50% and 38.2% Fibonacci re-tracement levels. In a meant time price stays within the trading range between $11.00 and $13.25, however the MACD cross-over speaks in favor further price advancing...

This time we decided to use XAU/S&P500 Ratio together with EMA (Exponential Moving Average), offered by greatest, to look at the Gold & Silver Index development. The conclusions are:

- The current consolidation phase is not over yet...
- 150 and 165 resistance levels have to be broken in order to continue the major UP- trend...
- Descending Triangle sometimes is a reversal pattern, and the future development will reveal the direction within next few months, we just have watch its bounds for "breaks"...
- XAU/S&P500 Ratio and EMA compliment other indicators to identify and/or confirm current trend development..



Vitali Logman

Author: Vitali Logman

Vitali Logman provides news, analyses, reports and general information in a single internet destination that we hope will be invaluable to anyone with an interest in silver, the precious metal seemingly forgotten by the investment mainstream. By "silver stock" or "silver company", we mean any publicly-traded company with a primary (50% or more) focus and operation involving the exploration for, development of, or production from primary silver mines. Such mines are somewhat of a rarity in that more than 70% of the world's silver is produced as a by-product of mining for gold, copper, lead or zinc.

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