Saturday, January 1, 2011

Silver recap

Good night,

First of all let me wish you all a great new year, plenty of health and, hopefully, wealth as well.

Even though I have no clear idea about the fundamentals (if any) driving the current silver market, let me show you the monthly SLV chart and do some technical analysis on it:

This chart provides us a long term watch over silver. The first thing it comes to my eyes is the long term over-bought state of silver. RSI is sitting at over 95, the stochastic oscillator is also above 90. There's still no divergence in the indicators which is why this is a very strong move. Only volume diminished a little bit in December, but this is quite normal.

This condition arose in sequence of the current strong  uptrend that started back in August/2010 aroud the 18.0 level. It has been 4 months and 70% valuation on silver price since then, making us all plenty of joy.

Silver ended 2010 making a new year high (still not a new all time high, but approaching...) at 30.25 (SLV price - more or less 31 in actual silver price).

Let's see what 2011 will bring to us that are trading this market.
Nice trades!

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