Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Silver market update

IMG Auteur
 
Published : November 13th, 2012
493 words - Reading time : 1 - 1 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
FOLLOW : B-wave, Cot, Gold, Silver

 

 

 

 

We exited our short positions in silver for a modest but useful profit when it broke out of its downtrend towards the end of October. It then broke sharply lower on heavy turnover in a move that looks capitulative, but afterwards turned and rose quite sharply over the past week. So the question now is “has it bottomed?” Although the answer to this question is “Yes, it looks like it has”, it also looks like it may back and fill for a little while to complete a base pattern before a sustained advance can get underway. The latest silver COT continues to give grounds for caution and warns that the current turn may be the B-wave trap of a 3-wave A-B-C correction. We are aware of this danger and place stops accordingly to protect us from it.


Silver hit the downside target given in the Marketwatch article posted on the site on October 16th , and is showing signs of basing, as we can see on its 6-month chart below. Whereas October is seasonally negative for gold and silver, November is seasonally positive, especially for gold, which is probably why gold has been performing better than silver in the recent past. Thus while gold has been trying to push out of its small base pattern in recent days, it is believed prematurely, silver has not attempted this feat, and looks like it is in the process of marking out a more proportional small Head-and-Shoulders bottom. Action in both metals looked short-term toppy on Friday after the week’s sharp rise, so it is reasonable to expect silver to drop back and mark out the Right Shoulder low of the potential Head-and-Shoulders bottom shown on the chart. This pattern could abort of course, if the current turn is the B-wave trap of a 3-wave A-B-C correction, and we will now see why this could be so on silver’s latest COT chart.




Given how far silver has dropped back in recent weeks, the Commercial short and Large Spec long positions have not dropped back as much as they should for bulls to be comfortably confident. This is why we have some suspicion that the current turn may be a sucker rally, although one other outcome is a modest rally that doesn’t manage to get above the September – October highs. This is the scenario that the current pattern suggests is the most likely.




On the 3-year chart for silver we can see that overall it remains stuck in a large trading range bounded by the nearest support and resistance shown, although the way it has reversed near its 200-day moving average looks positive. This chart makes clear the importance of the resistance in the $35 - $37.50 zone, as this level has turned the price back 3 times already over the past year. If it can succeed in breaking above this resistance level it will be the most bullish technical development since the April 2011 highs.



 

 

Companies Mentionned : Metals X |
<< Previous article
Rate : Average :0 (0 vote)
>> Next article
Clive Maund is a specialist of technical analysis. His website, www.clivemaund.com, is dedicated to serious investors and traders in the precious metals and energy sectors. It offers no nonsense, premium analysis to subscribers. It is 100% subscriber supported, and takes no advertising or incentives from the companies it covers. No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis. Happy trading.
WebsiteSubscribe to his services
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Mining Company News
Thompson Creek(Mo)TCM.TO
mpany Confirms Completion of All Obligations Relating to Outstanding 6.50% Tangible Equity Un
CA$ 1.12-0.88%Trend Power :
Corporate news
Golden Tag Res.(Ag-Au-Cu)GOG.V
Clarifies Its Disclosure on the Mineral Resources on the San Diego Property, Durango State Me
CA$ 0.03+0.00%Trend Power :
Corporate news
VVC Exploration(Gems-Pl-Ag)VVC.V
Announces Closing of a US$75,000 Debenture Placement
CA$ 0.04+0.00%Trend Power :
Financings
Globex Mining(Ag-Au-Co)GMX.TO
Announces Election of Directors
CA$ 0.18-2.70%Trend Power :
Nominations
WGI HeavyWG.TO
Wellgreen Platinum Provides Wellgreen Project Update
CA$ 0.37+0.00%Trend Power :
Corporate news
Midlands Min.(Au-Gems)MEX.V
and Alder Resources Ltd. Announce Business Combination
CA$ 0.00-50.00%Trend Power :
Corporate news
Alder ResourcesALR.V
Midlands Minerals Corporation and Alder Resources Ltd. Announce Business Combination
CA$ 0.02+0.00%Trend Power :
Corporate news
Lydian International(Au-Le-Zn)LYD.TO
Discloses Environmental and Social Impact Assessment
CA$ 0.55-1.79%Trend Power :
Corporate news
GobiMin(Cu-Ni)GMN.V
Announces First Quarter 2015 Results
CA$ 0.46+0.00%Trend Power :
Financials
North Arrow MineralsNAR.V
Announces Closing of $4 Million Bought Deal Private Placement
CA$ 0.98-2.97%Trend Power :
Corporate news
Comments closed