Here is a year to date chart of the World Silver Index for Sept 15th, 2010. It has been in a bullish trend since August 24th with higher highs and higher lows. Stochastics are currently embedded and the MACD Histogram is above the centerline and rising again. Should the trend continue, the 2008 high of 21.35 may be pierced in the near future. Silver had a all time high price of +$50 and ounce in 1980, but it was manipulated by the
Hunt Brothers. <-Click to read a short article on their story)
When Silver does hit $50 and ounce, this time it will not be by manipulation, but by:
- Investor demand
- Short squeeze
- Industrial demand
Based on a fibonacci drawn from the low in 2008 to the high in May 2010, the 161.8 level suggests the next high of $26.25 an ounce.
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