Gold prices could rise from 1600$
February 19, 2013
Bears over Europe part 2
February 21, 2013

Silver usually moves in parallel with gold and that is why it has broken below the late December lows to fresh new ones at 29,18$. However Silver is not as weak as gold since it trades just above the December lows. On the other hand Gold is 1,5% lower than early January lows.

silver

Since our longer term view in Gold is bullish, we cannot say something different for Silver. The current trend may be down, but the pattern of the decline is not impulsive. The overlapping structure of the decline makes us believe that this decline is corrective and the main upward trend will start again. For the short-term, prices of Silver could bounce but it is very possible to see a new low towards the 28,50$ level. We will turn actively bullish on Silver if prices break above the 31$ resistance and the 32,50$ high. The sequence of will end if this happens and trend will have changed. Searching for a bottom might be risky at this point as the only certain bullish stop-loss level is 26,11$.

Thank you for taking the time to catch up on my thinking.

HigherHighsLowerLows

Alexandros Yfantis
Alexandros Yfantis
Fascinated by financial markets, studied International Securities Investment and Banking in the UK, works as a Portfolio Manager in Greece and runs a technical analysis website. Enjoys travelling and spending time with his family and preparing for the black belt in Korean Karate.