Today I again want to talk about technical analysis. This time of silver.
As always I use a weekly chart to draw my conclusions:
Figure 1. Weekly chart of the World Silver Index from 2013 until now. 50-week moving average is in blue and 100-week is in white. Ascending and Descending Trend Lines are also in white. Chart: FreeStockCharts
There are a few things going on in the chart.
What we see is that prices were heading down for the better part of 2013, 2014 and 2015.
But then they changed direction in the beginning of 2016 and have been moving up ever since.
Furthermore, we don’t have the same clear bottom as we have in the gold chart, but rather a more extended support zone (see figure).
Obviously, we can draw ascending and descending trend lines, but I’m not sure if they are really in play in the market.
We blew right through the descending trendline a couple of weeks ago without any struggle. That indicates that it is not really in play.
Then the 50-week moving average is ascending as well as the 100-week which to my eyes looks healthy.
In short it seems to be a good moment to enter the silver market.
If you would like to learn more about the basics of Technical Analysis, please read this.
The post Technical analysis of silver – Tuesday, February 28, 2017 appeared first on LJ Nissen's blog.
