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 23 May, 2007 | | Discuss This Article - Comments: Source:

While looking weaker than gold at this time, silver is expected to turn up shortly for the same reason as gold - the inflationary implications of an impending sharp rise in the oil price the expected breakout by oil from its large Head-and-Shoulders bottom formation will project it to a minimum target at $80.

On the 6-month silver chart we can see the potential Head-and-Shoulders top that has formed during this period, that had been identified earlier, but we can also see that, at least on the basis of its recent performance, silver is close to its normal oversold limits, as shown by the oscillators at the top and bottom of the chart, so there is plenty of scope for an advance. Note also how it is at a classic buy spot, being just above its 200-day moving average, the point where it turned around on 2 previous occasions during this period.


Thus, despite the potential Head-and-Shoulders top in silver, and despite it looking weaker than gold at this point, with its downtrend not converging in the same bullish manner as the downtrend in gold, the combination of the powerful bullish influence of a strongly rising oil price and its present oversold condition have created the conditions for a strong rally that is likely to start soon. Probably what we will now see is a strong rally from here followed by a reaction next month into the seasonal low period, before the advance resumes in earnest.

The Commercials short positions in silver fell significantly last week, but were not, as of last Tuesday, at a level thought to be low enough to allow for a big rally. It will therefore be interesting to observe the situation at the end of this week, to see if they raced to the exits early this week as they did with their oil short positions early last week.

-- Posted 23 May, 2007 | | Discuss This Article - Comments:

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.