Skip to main content

Silver Outlook - Technical Analysis

Silver has been moving in a range of $1.50 for well over a month. We have enough reasons to believe Silver trend has bottomed out at $8.50 levels. What we have seen is more in a fashion of retracement arising out of oversold conditions. The chart patterns are not yet suitable for rally but as mentioned the trend which began in March at $21 levels right down to December bottom is likely to have ended in December. We are likely to see another retest or similar move.









The silver entered into a resistance packed zone around $12, from where it retraced. Looking at this positively, even with such resistances prices have not moved but have consolidated below the $12 marks. This either implies, on a medium to long-run we are opened to a massive upside possibility.

Its time to buy Silver



We also feel the retest is possible, as the bottom needs to be reiterated. In the short term, we have seen two top like formations in mid December and early Jan around $11.80 levels. This is likely to cause some serious resistances in very short term. The support trend line which is moving up from November lows to now, is broken. And also there is a definite signs of slowing momentum. But that’s the story for short term.





Either with a retest of $8.50 lows (or nearby $9) or a time-bound correction within a range should enable prices to challenge the resistances currently placed at $13.50 and $16.50.

rETRACEMENT

Labels:

Comments

Post a Comment

Popular posts from this blog

Cognitive rules of business presentations

In his recent book, Clear and to the Point, Kosslyn explained that the four rules of PowerPoint are: The Goldilocks Rule, The Rudolph Rule, The Rule of Four, and the Birds of a Feather Rule. Here's how they work. The Goldilocks Rule refers to presenting the "just right" amount of data. Never include more information than your audience needs in a visual image. As an example, Kosslyn showed two graphs of real estate prices over time. One included ten different numbers, one for each year. The other included two numbers: a peak price, and the current price. For the purposes of a presentation about today's prices relative to peak price, those numbers were the only ones necessary. The Rudolph Rule refers to simple ways you can make information stand out and guide your audience to important details -- the way Rudolph the reindeer's red nose stood out from the other reindeers' and led them. If you're presenting a piece of relevant data in a list, why not mak...
Post a Comment
Read more

Monetary inflation, Spiritual devaluation

Its been sometime I have been trying to make some special people understand the evils of inflation. Inflation is an abstract subject most of us dont know about, let alone understand the technicalities amidst jargons. I have in my previous post have briefly touched the social part of inflation but never in a concentrated way. I understand what my friends mean when they say "tell me in layman’s language." It is not a heartening sign, that they avoid technicalities. But it could well be that knowing where they stand, their role and understanding the social changes in the light of inflation may motivate them to understand the term "inflation." This is just to highlight the brief points. First and the foremost, is there any link between inflation numbers and society. Yes. The relation is same as the relation between society and money. What is money? Money is an easy means of exchange. If I am selling my horses to a pig-farmer and I am not interested in taking pigs in ret...
2 comments
Read more

Unprecedented External Demand Shock Underway

India’s export growth averaged 24.8% over the last three years, driven by strong global growth. However, over the last three months, export growth has decelerated sharply. While until recently the strong demand from emerging markets including Latin America, Emerging Europe, the Middle East and Africa ensured that export growth remained healthy, over the last three months disruptions in the macro environment of these economies have been evident. Apart from weakening demand, exports have also been affected by the lack of availability of foreign trade credit and inventory liquidation. India’s exports declined by 12.1%Y in October 2008 compared with 10.4% in September and 26.9% in August. While we expect some improvement in the second half of 2009, exports are likely to be unusually weak over the next six months. We now expect exports to decline by 5.3%Y in 2009 compared with 12.7% in 2008 (estimated) and 23.1% in 2007 Excerpt source
Post a Comment
Read more