Wednesday, 20 July 2011

Silver Bull Still Charging

On June 25 I posted Silver Bubble Dead, Burial Beginning. With Silver now trading 10% higher than at that time, it seems that the call was at best mistimed, or at worst plain wrong. Time will tell.

It's time for a fresh look. Let's step back to a long term view.

This log scale monthly candlestick chart of Silver since the turn of century shows a very clear trend channel. In my view, so long as Silver stays above the topmost trend line, the bull market is intact. 

Markets Wrap

Quite an eventful 24 hours. Have stocks bottomed? Has Gold made a top? I don't know, but here are the charts.

S&P 500 hourly chart. The trend line break I posted a dozen hours ago or so has travelled further.

S&P 500 daily chart. A move over the recent session highs and above the 18 day moving average would change the trend to strongly up. 
ASX SPI 200 daily chart tested support again yesterday, making a false break, and reversing upwards. 

Gold daily chart. Market is testing the top line. Given that the moving averages are crossed bullishly, any weakness is a chance to look for a good long entry, perhaps near the 18 or 40 day moving averages, depending on what unfolds.

Silver daily chart. 
EUR/USD daily chart. Market tested the trend line again.

GBP/USD daily chart. Market tested the neckline again.

AUD/USD continues to meander sideways.

USD/JPY continues to trade within the trend channel.