World Silver Index Sept 20, 2010

3 month chart of the World Silver Index, Sept 20, 2010, 7:33am PST.

All of the technical indicators from the previous posts remain the same, Silver is in a bullish trend with higher highs and higher lows. Embedded Stochastics indicate upwards momentum going forward.  Based on this index, Silver is .48 from meeting the 2008 high of $21.35.  It passed the May high of $19.85 with no major resistance.

Based on a fibonacci drawn from the 2008 lows to the 2009 Dec high, the next peak at the 161.8 level is $26.25. (Circled in white)

Silver should continue to appreciate in the next few months based on seasonals, uncertainty in the worldwide financial markets, industrial demand and possible short covering.