www.goldtrends.net Silver reached Monday resistance in the 43.40-43.70 area at the upper purple channel line. This should provide resistance going into Tuesday. Support is the 42.20, 41.60, and 40.60 area. Most importantly ---- the dotted trend line and lower purple line is weekly support. KEY resistance will be 43.50 and up to 44.80 over the next few days. With silver 40% above the 200 day average --- there is no doubt that price (historically) is overbought on a short term basis. The downgrading of US debt and the increased euro debt situation should be supportive of metals. The only thing to watch is the US stock market and the 200 point drop so far today. If the stock market BURPs and begins another leg down -- it may affect all markets on a short term basis........ and keeping in mind the poor performance in silver stocks last week -- one should at least maintain a bit of caution at this price level until the market digests this latest news.
Silver mid day Monday
www.goldtrends.net Silver reached Monday resistance in the 43.40-43.70 area at the upper purple channel line. This should provide resistance going into Tuesday. Support is the 42.20, 41.60, and 40.60 area. Most importantly ---- the dotted trend line and lower purple line is weekly support. KEY resistance will be 43.50 and up to 44.80 over the next few days. With silver 40% above the 200 day average --- there is no doubt that price (historically) is overbought on a short term basis. The downgrading of US debt and the increased euro debt situation should be supportive of metals. The only thing to watch is the US stock market and the 200 point drop so far today. If the stock market BURPs and begins another leg down -- it may affect all markets on a short term basis........ and keeping in mind the poor performance in silver stocks last week -- one should at least maintain a bit of caution at this price level until the market digests this latest news.
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