Wednesday, November 24, 2010

Nov 24th Silver

Silver closed flat at $27.57 on Wednesday, the day before Thanksgiving.  It is above the short term 15 day moving average and off of the lows of last week.

I have drawn a trend line down from the peak a few weeks ago and the lower support trend line. You can see that it is coming to a point which will be a breakout either to the upside or downside in my opinion.

My guess based on QE2, Seasonals and the overall trend of Silver that it will break to the upside.  

On the other hand, Silver has gone up over 62% year to date ! ! !  I would not be surprised if it were to break low because of that fact.  Funds and Institutions will also want to lock in profits for the 2010 year and may be taking profits early and before a drop in the price. (Look at last years Gold / Silver price after December 3rd).

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