Silver March 8th

World Silver Index for March 8th, 2011.  Hmm, not too much is needed as far as analysis huh?  Since the low on January 28th of 26.30, Silver has had higher highs and higher lows with no significant pullbacks.  The January low to yesterdays high of 36.75 is $10.45, all within a month.  The shorts lost money all the way up and I'm sure there are new shorts coming into the market anticipating a top at the 30 year high.

Stochastics are embedded to the upside, so higher prices are possible. Once the K line drops under 80, we may see the start of a correction or consolidation.  The RSI is also over 70 which is Overbought and the likelyhood of a pullback/consolidation sometime within this month is highly probable.

There is no financial instrument that continues to head higher for a long periods of time. When this does happen, its just a matter of time before the bust happens so a correction is 'healthy' for any financial instrument.  We are a few years away from the mania stage in precious metals.