August 11, 2010

Silver Update - 1:47pm EST. The $17.86 level has worked well as support. When looking at this 5 min chart below the range from its bottom was $17.80 to $17.89. 0.09x1.618+17.80 = $17.945. That was the top it recently touched. The next price target is 0.09x2.618+17.80 = $18.035. The next level after this is $18.10 as this the 61.8% level from the $18.29 highs. After this is $18.15 which is the 38.2% level going back to the highs of $18.70 last week. Therefore if any moves happen to take us higher, I would expect it to lose stream around $18.10-18.15. $17.85 which was fibonacci support before is the 38.2% level from the highs in the last hour is massive. To maintain its upward momentum, this is the area it needs to hold. If it does not then a twenty cent drop is expected.



Silver Update - 11:35am EST. The failed move in silver is the afternoon session from yesterday. Silver has now fallen below $18.00/oz as it remains in this tight multi month trading range. The high on this chart is $18.70 and the low is $17.32. The difference on the two numbers is $1.38. If we multiply this number by 38.2% this gives us 52.7 cents we can add on top of $17.32 which gives us a level for $17.86. Because as of this post, Silver is at this level, it is an area it is likely to find some degree of support. If you trade because it reaches this area, I advice you to be aware of risk and reward and thus have proper stops in place. There is another level going to $17.67 if this level fails to hold. This is a key area for silver, because if a chart is not able to hold this significant fibonacci level, then it can very easily manifest itself into a fast move on the short term trend going lower.

Finviz Silver Chart

ARTICLE - Bob Chapman Forecast for August
Well, it's just the same old, same old, business as usual in America. The Fed creates money out of thin air, uses it to keep the economy from teetering over the edge of destruction as ludicrous salaries and bonuses are collected by Wall Street Illuminists and as US consumers are deceptively informed that we have green shoots sprouting up and that recovery is just around the corner.

ARTICLE - International Business Times
At this point, intraday bias in silver remains neural. Nevertheless, note that break of 18.075 support will confirm that rebound from 17.324 is finished. In such case, intraday bias will be flipped back to the downside for 17.08/195 support zone again. On the upside, above 18.70 will bring another rise to upper trend line resistance at 18.9 level instead

ARTICLE - Regulators get tough on silver trading floors
The State Bank of Viet Nam has asked the Prime Minister to restrict silver trading floors and shut down any offering escrow trading.

ARTICLE - Is Silver Ready to Move Higher?
James Turk writes --

It is gold - and not silver - that gets all of the attention being given to the precious metals these days, and why shouldn't it? After all, gold has risen nine years in a row against the US dollar and appreciated during this period at an impressive average annual rate of 17.1%. In a continuation of this trend, gold is up 9.9% year-to-date, making it one of this decade's best performing asset classes. But don't overlook silver.