Seeing as everyone keeps asking about Silver I asked Bill Downey at http://www.goldtrends.net if it would be OK to post his latest. Bill offers a subscription based news letter with no nonsense advice for the serious trader.
Sorry I couldn't get this out earlier but life interrupted.
Click the charts to make them bigger after the read more
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Click the charts to make them bigger after the read more
The Monthly chart in silver shows the critical price point we’ve reached. Notice how price is on the verge of giving way to a channel that has supported price ever since the first crash wave from 2011. More important is this support line is SEVEN years old and breaking this line on a MONTHLY CLOSING BASIS would add bearishness to the longer term trends and potentially could become a key resistance point. At the same time notice the two moving averages (Blue and Red). These long term averages are key momentum gauges. The ONLY TIME that price has broken the lower RED average was during the 2008 crash (about mid way through it).
It took 8 full months to get back above and price dropped over 25% once that average was broken on a monthly closing basis. Last THURSDAY’s close at 28.32 was BELOW the average (28.62). With the break of the channel line and the moving average, the LONGTERM trend is in danger of moving from bullish to neutral but more important and as a COMPARISON, if silver were to perform in the same manner as the last it broke this average, silver would reach 19 dollars and would be back above this area until 2014. So it is paramount that silver finds support near here and turn around as there’s not much room before STOP LOSS and MARGIN selling comes into play. In summary, the medium term trend is down and the longer term trends are under attack. It’s best to remain DEFENSIVE with silver at the moment and hope that the seasonal trends that favor prices for metals in April/May arrives quickly
