Sunday, February 6, 2011

Feb Silver technical analysis

Here is a chart of the world Silver index for 2011. For the whole month of January, Silver and Gold pulled back some of the gains realized in the 4th quarter 2010 bull run.

A fibonacci retracement was drawn for the latest run-up which is not entirely seen on the chart.

  • Silver is trading above the 15, 50 and 100 day moving averages. The 15 DMA is under the 50, if the 15 should crossover the 50, the rating will change to bullish. (Neutral)
  • The MACD Histogram crossed over the 0 line on Feb 2nd and is rising. (Bullish)
  • Stochastics K and D line are both on the rise. (Bullish)
  • The recent low for Silver was made on Jan 28 at $26.30 which touched the 23.6 level of the fibonacci retracement. (Drawn for the November/December run-up.)
  • Silver is producing higher highs and higher lows. (Bullish)
As mentioned in previous posts, I think Silver should have a better month to the upside than January. It is sometimes strange that the changing of a month could have an effect on a commodity price. In any case, Silver may make a run to the previous high set on January 3rd of $31.28 if it should continue the bullish uptrend.

Short term: Bullish
Intermediate: Netural
Long term: Bullish

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