The Premier Silver Resource Website

Live Spot Silver
Silver Market Articles
Silver Discussions at the Forum
Silver Company Links
Silver Market Updates
Silver & Gold Headlines
Silver Stock News
Silver Equity Quotes
Silver & Precious Metals Quotes

Silver Market Update

By: Clive Maund

-- Posted 20 December, 2004 | | Source:

We have had several bearish developments in silver this month. It failed just beneath its April highs, then it plunged precipitously and in the process broke down from a long-term parabolic uptrend. That said, silver does have a habit of staging violent shakeouts and then going on to gather itself together before advancing again. What is very clear is that silver’s plunge halted exactly on the lower intermediate uptrend line in the vicinity of the rising 200-day moving average, shown on the 1-year chart. This very important trendline support must hold - if it doesn’t another rapid decline to the $6.10 area or even down as low as $5.50 will be the consequence.


There is no disputing that silver is a considerably weaker play than gold at this time, the recent reaction was far more severe than that of gold, and in marked contrast to gold, it reacted FROM its Spring highs whereas gold reacted TO its Spring highs. There is thus considerable risk that the current tight trading range is a “downflag” - if it is the price will break down from the channel and plunge again. Assuming no breakdown occurs it would likely take several weeks of trading above the lower channel line for sentiment to recover sufficiently to put silver in position to stage another significant rally. Traders wishing to go long will run less risk if they wait for the price to rise up through the 50-day moving average, which will drop back over the next several weeks. Traders who are considering going long with the price above the lower channel line, with the intention of placing a stop to effect a swift exit on a breakdown from the uptrend need to be aware that because this channel line is so clear and obvious, a large gap down is likely to occur should the price break down, rendering most stops useless. A tactic to avoid be caught like this would be to buy with the price comfortably inside the channel, but with an exit point/stop a little ABOVE the channel line, accepting the risk of being shaken out for a minor loss as the price of avoiding being caught up in another plunge.

-- Posted 20 December, 2004 | |

Contact Clive Maund -

Last Three Articles by Clive Maund

Silver Market Update
5 December, 2011

Silver Market Update
20 November, 2011

Silver Market Update
7 November, 2011

Clive Maund - Archive List is presented to you by:

© 2003 - 2011, Silver Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.


The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.