Silver is likely on the verge of breaking out to retest the 15.21 cash high from May' 06. Once 14 on the cash market is blown out, then there should be additional buying interest coming forward. On SLV, a close over 138 would provide a very optimistic setup for a move to test the swing high of 15.21 on the cash spot market. For those that have read my other threads, I have had a long standing target of $22-26 on silver by Spring '08. As of today, my best technical read into Silver is that Stage 2 of a 5 stage advance in Silver has begun. Be on the lookout for stop gap moves over 14.125 in SIZ7...
Realist, I enjoy reading your handiwork. Been thinking it's about time for silver to catch up to gold, I especially like the quiet breakout. I don't know much about silver supplies, any funnymentals that might support higher prices?
Gold typically leads Silver during new uptrends as the demand cycles are stronger for Gold in the Fall months due to Asian investment and global jewelery demand for the holiday periods. Silver will normally begin to match gold performance and then 'outperform' in the Winter and early Spring months due to industrial demands. I believe that the fundamentals for silver this time around will be very strong and will likely surprise many who remain bearish on future silver prices. The technology, aerospace and aircraft industries are some of the largest consumers of silver products and those sectors are exploding right now. Just have a look at the $NDX or any aerospace share prices like NOC or GD and you will know what to expect in the months to come...
I like watching long term charts...20-50 years or more sometimes. These levels on commodities are getting crazy. I think the silver bull argument is strong here. Currencies, metals, energy, ags, equities - all near record highs. So what's the Fed going to do? Cut, cut, cut 'till the Wall St. bonuses are paid. Their actions speak louder than any rhetoric on tv. "Let the dollar go" they said. Eventually? Some more frothing, volitile markets. Then some catalyst will cause the beginning of the end of the 6-7 year bull. Perhaps when oil is $200, gold is $2,000, a box of wheaties cost $12, and that side order of corn on the cob costs $21, the fed will finally be forced to raise rates. Let's not even get into the carry trade collapsing completely at some point. 'Till then, stay long 'till the ground starts shaking. There's going to be more stupid $ made on the long side before these bubbles pop. We're close to the 7th inning stretch. We need some more volitility spikes and swings, then an event, then the end of the world as we know it. U$D #1 no more...of course, this started years ago. I know one other reason silver might go up. Look at all the billionaire chinese we've created. They love gold/silver. I wonder how many chinese now have gold teeth.
Some "back in fill" on Silver is welcomed here since Silver has moved up about $0.75 in the last few days. 14 even on the cash charts should provide good support as there are likely buyers lined right up at that level. We will need to see silver beat out the 15.21 cash high in order to target much higher prices.. If one has a look at the long term chart of silver, 15 presents a resistance level that goes all the way back to 1982. Once this level is broken in a decisive manner, then the next resistance target becomes $25.00...
http://www.technicalindicators.com/silver.htm According to the table in the link, supply for Silver is incresing while demand is decreasing. So howcome the price of Silver is increasing?
all I can say is do your own homework. that site has had a long standing opinion of bearishness on both gold and silver for years now. if one is skeptical about the future direction of metals prices then stand aside. there is no margin of error in this game...
Well, Im all bullish on silver and Gold. Especially silver. But that table just confused me. I mean are they manipulating the numbers or are they true figures? I read alot about how Silver is more scarce than Gold and running out quickly. But the thing is, I never saw any supply and demand figures from the bullish side. Let me try and ask another question too. If the fundamentals of Silver are as strong as the bulls claim they are, how is it that the prices are supprassed at such a low point for decades??!!