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)

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.

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.

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

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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.