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« Silver Prices Soar: Our Silver Trade Closes, 100% Profit in 30 Days | Main | Buying Stocks: A readers concerns »
Sunday
Sep162007

Silver: Looking for a higher High!

Silver Bull 14sep07



Monday and Tuesday this week could be a tricky for silver, however Tuesday is the 18th September and meeting day for the US Dollar rate setters. We anticipate a rate cut, as consumers need some sort of pain relief from the financial markets. Come Wednesday we expect the dollar to drift lower and gold to act inversely and push for higher ground. As gold moves up we expect the spotlight to move to silver with a positive affect.

If the rate cut does not materialise then its consolidation time again. We must also keep one eye on silvers technical indicators as they also have a story to tell.

Taking a quick look at the chart we can glean the following; Silver has suffered a severe correction and then bounced back. Note that these are lower highs and not higher highs and also note that the MACD and STO are in the sell zone. We need to see silver move up through the £13.00 level and hold before moving on to make a higher high. Finally that other wonderful intangible indicator GT tells me that this is about to happen. (GT=Gut Feel)

Silver Chart 16sep07


As the number of new readers climbs on a daily basis we will recap briefly on what we have been saying recently.

This first chart shows when we gave a buy signal at $11.80, when we said: We are hereby giving a BUY signal on silver, for a short term upwards move of $1.00 from its current level. We expect silver to move up to nearer its 50 and 200 day day moving averages in the next week, possibly the next few weeks.

Silver Chart 17aug07


This second chart shows silver starting its recovery and also shows when we gave a short-term buy for a $0.50 move for those traders who trade the swings.


Silver Chart 27aug07


We hope that you are enjoying this little adventure and invite you to comment on any of articles, the more the merrier!

Stay tuned by signing up for our free newsletter, which is easy to do, just click this LINK and enter your email address.

Do try and develop your own set of warning lights by watching a wide range of stock market indicators. For starters read stock market reports, watch stock market news, follow silver futures, gold futures, gold options, silver options. Note the changes in silver quotes and try and understand the reasons for the change. Try and forecast the price of silver by the end of the week and end of the year, then look back and see just how close you were.

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Reader Comments (4)

I would like to know what does MACD and STO means in the article "Silver: Looking for a higher high!".

Thanks

September 17, 2007 | Unregistered CommenterJoão

I want to start investing in Silver.
What is the best way to do it, how do I open an investment account?

thanks

September 19, 2007 | Unregistered CommenterRoy

Joao,

Technical indicators:

The following explanations are courtesy of Stockcharts.com who carry a glossary of terms

MACD (Moving Average Convergence/Divergence): An indicator developed by Gerald Appel that is calculated by subtracting the 26-period exponential moving average of a given security from its 12-period exponential moving average. By comparing moving averages, MACD displays trend following characteristics, and by plotting the difference of the moving averages as an oscillator, MACD displays momentum characteristics.

Stochastic Oscillator: A momentum indicator developed by George Lane that measures the price of a security relative to the high/low range over a set period of time. The indicator oscillates between 0 and 100, with readings below 20 considered oversold and readings above 80 considered overbought. A 14-period Stochastic Oscillator reading of 30 would indicate that the current price was 30% above the lowest low of the last 14 days and 70% below the highest high. The Stochastic Oscillator can be used like any other oscillator by looking for overbought/oversold readings, positive/negative divergences and centerline crossovers.

Try this link if you want to learn about technical analysis.

http://stockcharts.com/school/doku.php?id=chart_school:glossary_a

Hope that this helps.

September 19, 2007 | Unregistered CommenterSilver Prices

Roy,

We can't give individual financial advice as we do not know your personal circumstances, aversion to risk etc, its not what we do - sorry

September 19, 2007 | Unregistered CommenterSilver Prices

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