|World Silver Index XSLV on Sept 27, 2010. 6:55am PST|
Not much to say about Silver and this particular chart. Since August 24th, it has been on a bullish run with no significant pullbacks. Stochastics are embedded and it suggests higher prices going forward. It is trading over the high in 2008 of $21.35.
As mentioned in previous posts, the fibonacci suggests that the next peak will be around the $26.25 area which may be next year...? I would guess that there will be a few pullbacks and consolidation before reaching that level.
With the Dow, S&P500 and Nasdaq recovering from their recent pullback, the latest news is that the overall U.S. economy doesn't seem as bad as once thought. The chances of a double dip recession is less likely going forward based on economic data. This bodes well for Silver as industrial use and demand will also pick up.