Saturday, 20 August 2011

Silver's long white candle.

It would seem like a no brainer that with all the recent troubles with sovereign debt in Europe and the USA that smart money would flow into precious metals. Gold and silver have done exceedingly well this week. See chart below:

Silver's price action formed a long white candle in the last session. This is an affirmation of the breaking of resistance five sessions before as the 20dMA was broken. Silver has been trading above the 20dMA for three sessions now.

The 20dMA is a likely resistance turned support. So, for anyone who would like to buy at support, the 20dMA at US$39.90 an ounce is the price to watch for now.

RSI is rising but is not overbought yet. The MACD has formed a higher low and has just completed a bullish crossover in positive territory. Momentum is positive and we could see silver's price going higher in the meantime.

I wonder if silver could test the high achieved in late April earlier this year once more. If it does, I would probably divest some of my investment in the metal.

To anyone who bought more silver based on technical analyses in my last couple of blog posts, congratulations!

Related post:
Closing above the 100dMA.

Sunday, 7 August 2011

Silver: Closing above the 100dMA.

Two weeks ago, I mentioned that I would not add to my long position in silver at the price level then. For the reasons why, please refer to the blog post here.

Silver closed above the rising 100dMA at US$38.33 an ounce, forming a black spinning top in the process. The longer term trend for silver is still up although it is experiencing some weakeness in momentum now. The MACD has completed a bearish crossover with the signal line but it is still in positive territory suggesting that silver is experiencing a correction and nothing more. See the chart below:

For the more adventurous, buying more at current levels is definitely better than buying two weeks ago. For the less adventurous who wish to buy closer to the 200dMA which is currently at US$33.66 an ounce, why not? It could happen. Good luck.