Tuesday, May 24, 2011

Silver rebound?

Daily Silver chart from late Feb 2011 from the 'Think or Swim' trading platform.
Silver has been trending slightly upwards and may start a rebound to the upper $30's / low $40 area.  Is this a counter trend seasonal rally?
The 'TTM' histogram has bottomed out in RED and started an uptrend in YELLOW 4 days ago.
The price momentum has indicated the start of an uptrend with the shift from RED to BLUE.
At $36, the price is now slightly above the 15 day moving average, but still below the 50.

Fundamentally, Silver is still in high investment demand as both China, India and the US purchasing to diversify out of fiat currencies. 

The matrix above from goldprice.org depicts various currencies vs Gold since 2002.  Gold's average gain against the currency is at the bottom, indicating that most of the worldwide currencies are dropping against Gold. With worldwide governments in fiscal trouble due to their spending, corruption and association with central banks, it's inevitable that both Gold and Silver will be higher going forward. Manipulation of the precious metals and fiat currency can only go so far, the worldwide free markets will eventually prevail, it's just a matter of time. 
Between 2013 and 2015 should be very interesting times for the metals market and for the financial world in general.

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