Monday, September 6, 2010

XSLV Technical Analysis Sept 6th, 2010

Here is the chart of the World Silver Index (XSLV) since May of 2010 with a closing price of $19.61.    (Click on the chart for a larger view)

  • Silver has had higher highs and higher lows since the low on 8/24/10 at $17.74. Bullish
  • Silver closed above the last break low of $18.83 on 8/31/10. Bullish
  • The price closed above all three key moving averages of 15, 50 and 100.  Bullish
  • The 15 day moving average is above the 50. The 100 day moving average is above the 50. Neutral
  • MACD Histogram is above the center line and rising. Bullish
  • Stochastics both K and D lines are above 80 for the 4th day (Embedded). Bullish
  • The price is above the last rally high on 6/21/10. Bullish 
  • Intangible - In September, highest price appreciation month for Gold/Silver on statistical basis. Bullish 
XSLV was close to closing above the May 13th high of $19.85. When/if this resistance line is breached, it may provide a new support level and a new bottom to the trading range. If the price continues to rise, the 15 day moving average should cross over the 100 day moving average which is another added Bullish signal.

With the embedded Stochastics, we should continue to see rising Silver prices going forward and a possible test of the 2008 high of $21.35 (red line).

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