Thursday, July 21, 2011

Sideways before >$40

Daily chart of the world Silver index from early May, 2011.   Silver has the short term 15dma crossover the 50dma on July 18th which is a bullish sign.  Is there more to come?  The next crossover would be for the short term moving average to cross over the 100 dma which may be as early as next week.

There is a bit of resistance at the even number 40.  Once through, 40 should become support and some may wish that they purchased those Silver Eagles when the spot price was at $33.

With the slight drop in the price, Silver is now under the Bollinger band and may consolidate for a short while just under the $40 level before the next ascent to $42/$43 level.  Europe still has major debt issues and the US is going to increase the debt ceiling which gives them the opportunity to increase the money supply.

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