Thursday, September 2, 2010

09/02/2010








Silver Uptrend Continues





The chart is rising and silver is looking to breakout of it's range. The SLV high on May 13 was $19.44. Today the intraday high has managed to get to $19.25. At some point a correction testing support will come into play, and as of now it is unclear when this will be. The trend is clearly higher and some key support levels are shown on this chart if it manages to happen soon. Fibonacci will be a key level as well as some key VWAPS and moving averages. The green moving average on this chart is the five day and it is rising nicely and has yet to have been tested as support since this short term bull market has begun. It has been a 10% gain from the bottom and just because 10% seems like it might be up too much in the short period of time, there really is no such thing as up to much until it actually is up too much. With that being said, this means that it could very easily go up another 10% or any other amount before it has some retracement either through time or through price. If it does go higher, watch to see if the lower fibonacci line will match the previous key resistance at $18.25. To find out the calculation for this for the bottom of $17.06 we can use the following algebra formula

A x 0.382 + 17.06 = $18.25
A x 0.382 = 18.25 - 17.06
0.382a = 1.19
a = 3.12
Therefore the difference would be $3.12 if that area of $18.25 becomes the 38.2% level which means from the bottom of $17.06, this would translate to $20.18 SLV or around $20.75 on the silver comex.

ARTICLES


Silver Could Gain On Gold, But Gold Likely To Outperform Oil
-Silver prices could outperform gold in the months ahead should the yellow metal keep attracting safe-haven flows, prompting some investors to turn to silver as a less-expensive alternative. However, analysts said, gold is likely to fare better than another benchmark commodity, crude oil, as the precious metal keeps attracting investor interest while oil is limited as a soft economy curtails industrial demand. (Kitco)

BUY OR SELL-Time to buy silver, a safe-haven Cinderella
Renewed uncertainty over the global economic outlook has revitalised the push into perceived safe-haven assets like gold, but as bullion edges ever closer to record highs, silver has emerged as a cheap alternative. Dubbed "the poor man's gold," silver XAG= has risen by nearly 15 percent so far this year to above $19.00 an ounce, making it one of the top performing commodities of 2010(Reuters)

Gold and silver analysis: Showing upside promise, with serious downside risk looking limited
It is, perhaps, significant that yesterday’s rapid upturn taking the gold price up around $15 to touch the $1,250 level and silver trading comfortably above $19 again, occurred as the U.S. markets opened after the precious metals traded flat to downwards in Europe and this is indicative of sentiment: The European economy is seen by some as being in better shape at the moment than that of the U.S...(Stockopedia)

Why You Must Consider Silver for Your Investment Portfolio
You will probably agree that everyone who believes in owning precious metals as a part of their portfolio loves gold. Of all the major precious metals, gold, platinum, and silver, silver seems to be overlooked, or even pointedly ignored, when it is time to make investment portfolio decisions. You may be able to think of a variety of reasons for why this is the case...(WealthBuildingCourse)


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