Silver has been in a trading range since the last drop and announcement of the 'twist' program from the Federal Reserve. It's currently trading under the short, mid and long term moving averages which is technically bearish.
You can see the 3 trading ranges indicated with the boxes since the Comex margin increases last May. Fundamentally, Silver should break towards the upside with the debt issues in both Europe and the US. But as well all know, the spot price is derived from the futures market and the individuals with the most money sets the prices in the short / mid term.
Bottom line is that it is very hard to determine which way it will break after this consolidation period. Investors may have to wait until January to find out.
You can see the 3 trading ranges indicated with the boxes since the Comex margin increases last May. Fundamentally, Silver should break towards the upside with the debt issues in both Europe and the US. But as well all know, the spot price is derived from the futures market and the individuals with the most money sets the prices in the short / mid term.
Bottom line is that it is very hard to determine which way it will break after this consolidation period. Investors may have to wait until January to find out.
