Two Bullish Bases for Silver and SLV

World Silver Index daily

Silver forming a base on top of a base as it consolidates sideways from it's last rally.  COMEX open interest finds a recent low for contracts as speculative longs come back into the market.  COMEX net spec length as a percentage of open interest has also seen a quick turn around from low reports around 12%. 

Silver's short term resistance level is at $41.50/oz and support at $39.00/oz.
 
SLV 1 month, 60 minute candle

20 and 50 day moving averages converging as volatility increases in SLV.  ETF holdings have been on the rise since early July.  The gold to silver ratio has broken below 40:1, even as gold is making numerous all time nominal highs all the way past $1660/oz.  This is a bullish break for silver, which may have some catching up to do.

SLV's short term resistance lies at 40.30 with support at 37.50
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Comments

  1. UBS Capital PartnersAugust 3, 2011 at 1:45 AM

    We aren't going to the moon, but we sure are breaking $50.

    ReplyDelete
  2. The Scene Hip Hop MagazineAugust 3, 2011 at 4:15 AM

    stuck at that 50.0

    ReplyDelete
  3. Think Tank ENTAugust 3, 2011 at 4:29 AM

    A breach of $100/oz for silver is not too far off.

    Yes, short term hitting a lot of resistance at that 50 retracement.

    ReplyDelete
  4. AGAugust 4, 2011 at 6:22 AM

    SNB, BoJ and ECB intervention should give a hand at that!

    ReplyDelete
  5. Think Tank ENTAugust 4, 2011 at 7:24 AM

    Certainly helping to usher in some volatility, fun day for precious metals and FX.

    ReplyDelete
  6. Think Tank ENTAugust 4, 2011 at 6:56 PM

    VIX ended up 35% for the day.

    ReplyDelete
  7. Think Tank ENTAugust 4, 2011 at 6:58 PM

    Sliver sold off late, likely big money raising money to cover their potentially deficient margin accounts on high selling days where 497 out of 500 SPX companies are down for the day.

    ReplyDelete
  8. RogerAugust 5, 2011 at 11:22 PM

    There are none so blind as those who will not see. 

    ReplyDelete
  9. ArnoldAugust 5, 2011 at 11:24 PM

    Listen to the silver bugs, they will make you A LOT of money. Silver isn't in a bubble, it will go into the hundreds, if not thousands of dollars per ounce. It will also bring great gains in purchasing power, not just break even from the dollar incineration.

    ReplyDelete
  10. Think Tank ENTAugust 6, 2011 at 5:17 AM

    I like that Roger.

    "I see said the blind man, as he picked up his hammer and saw."

    I still like yours better lol.

    ReplyDelete
  11. Think Tank ENTAugust 6, 2011 at 5:18 AM

    @ Arnold, they are some of the only bugs I recommend you put a close ear to.

    ReplyDelete

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