This Week in Silver
This week silver's trading range tightened to $34.50-$36.00, we saw six tests of $36.00 and it held as the resistance every time. Oddly enough we closed exactly at $36.00 for the weekend break. The bull and bear breakout and breakdown levels remain at $38.50 and $33.50. The silver futures market is still in backwardation out to 2014.
The gold to silver ratio (GSR) is currently 42.90 with the 50 day MA at 39.27 and 200 day MA at 46.97. The GSR is still in a major downtrend.
Commercial short covering in silver continues and to me it paints a bullish picture going forward as silver is still holding this range while these positions are unwound.
Gold Reserve ticker GRZ on amex is running like crazy. apparently off no news. some low floater effect maybe. just broke out again. probably a better trading vehicle atm than investment but i don't know much about its fundamentals.
ReplyDeleteThanks Mark, I'll keep an eye on it. Though I am always a bit apprehensive of projects in areas like Venezuela. Impressive breakout none the less. Down 10% on the day, hopefully it settles before another run.
ReplyDeleteNice breakdown, looking to spread, if we find 34.500 as the floor I will be happy as a clam
ReplyDeleteIndeed, the breakdown started Friday and certainly continued today, but never breached the support for this current medium term range.
ReplyDeleteDo you mean 33.50?
Yeah 33.5o, done spreading waiting it out.
ReplyDelete