The RSI has turned up from the boundaries of the oversold region while the MACD continued its decline. It is too early for the bulls to pop the champagne for sure. Of course, we could see the next few sessions turning into a relief rally as, after all, prices do not usually go down in a straight line but down a river of hope. Dust takes time to settle too.
What is most significant with the price action in the last session is that price has closed above the 100dMA and that is psychologically important. If price should continue to consolidate above the 100dMA, then, it could form a base for further upside.
I have people asking me whether it is now the time to buy silver, I can only say that this is a better time to buy silver than it was a few sessions ago. The risk premium is now lower and it is no longer overbought, not by a long shot. Could price go lower? Yes, it could but the downside is more limited than it was before. Know your own tolerance for risk and act accordingly. Good luck.
8 comments:
Hi AK71,
Stumbled upon ASSI a month ago, and want to say that I'd been enjoying your posts, and been a follower since.
Any TA for silver can be thrown out the window for now, as the recent crash was totally news driven, with COMEX making 4 margin calls in the last week the main reason.
See http://goldandsilverblog.com/how-the-comex-crashed-the-silver-market-0235/
Yes, this could be a great time to buy silver, but I would say to let the dust settle first and not try to bottom fish.
Just my views. Cheers.
Jim
Hi AK71,
Many thanks for yr constant update on silver. Sold some silver to take profit few days ago upon seeing bearish candlesticks. And bought some silver back again yesterday seeing the price touches close to 100ma support.
The recent corrections for silver is long overdue after an amazing fierce run up.
Mind to share yr view on silver long term outlook still look optimistic?
Thanks
Cas
Hi Jim,
I am glad you enjoy my blogs.
Yes, after such fierce selling down, it is only prudent to wait a bit for the dust to settle.
I read about the margin calls too but thanks for sharing the link.
As for throwing TA out the window for now, I think it is hard for me to do that. That's what I use to decide on entry and exit points. ;)
Hi Cas,
Congratulations on your timely profit taking. :)
In the longer term, gold and silver are going up as long as interest rates remain very low or near zero. Sounds simple? Yes, it is that simple.
If keeping paper money does nothing to keep us ahead of inflationary pressures, we have to be vested in hard assets.
As what Jim Rogers said, markets are subjected to corrections but in the longer term, it is better to be in commodities (gold and silver included) rather than in cash.
I will continue to work towards having 5 to 10% of my investment portfolio in precious metals. :)
Hi AK71,
I think uob changed the difference between buy and sell to S$0.65/oz...i remembered only 22cents/oz last time...i havnt noticed that when they changed...i'm also thinking to buy silver now...then i chk it..i thought it's more risk than before...pls correct me if i'm wrong...
Hi Jasmine,
There is a buy and sell spread. This spread is calculated in terms of % points. So, as the price of silver goes up, the difference in terms of dollar value would go up but in terms of % points, it remains the same.
As for whether it is riskier than before to invest in silver, it depends on your reference. If you compare it to 2 years ago, definitely, there is more room to fall if the bear should strike. If you compare it to just a week ago, there is less risk now. It's all relative. :)
went in at silver at 35.6usd. Missed the 100dma but decided that it's a good hedge.
Hi Dal,
Good luck to us all. :-)
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