silver – Andrew Thrasher

Silver Hits Support

Posted on April 9, 2013 by Andrew Thrasher, CMT

We’ve discussed the commodity sector a few times in the last few weeks. Silver has now fallen to the previous low set in 2012 as well as a long-term rising trend line with momentum nearing an oversold level. This is the focus of my article for TraderPlanet this week.

The precious metal has now fallen to previous support created in 2011 and 2012. If we take a step back and look at a weekly chart we can see that silver is approaching a rising trend line that was created back in 2003. During the financial crisis of 2008 the commodity was unable to hold the line but regained it in 2010, right before silver rose from $15 to $50.

Go read the rest: Silver Hits Support (TraderPlanet)

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+.

Time Horizon is Important For Silver

Posted on January 28, 2013 by Andrew Thrasher, CMT

I hope everyone had a good weekend. In my article for TraderPlanet this week I take a look at the setup in $silver.

Here is a piece:

Silver has created a triangle formation with the falling blue trend line and rising blue trend line as shown on the chart below. The bottom trend line is just below the 200-day moving average, which provides silver bulls with an extra layer of support so to speak. When looking at momentum, based on the relative strength index in the top panel we can see that each rally attempt is price is creating lower highs in momentum.

Head over to read the rest: A Trade in Silver All Depends on your Time Horizon (TraderPlanet)

Silver Update

Posted on September 5, 2012 by Andrew Thrasher

Silver has been on quite the tear recently, rising around 17% from its July low. I last looked at silver in my post on July 11, titled Has Silver Bottomed Out? when the shiny metal creating a base at the $26 level.

From that support created at $26, silver has reached possible resistance of its 300-day moving average. Below I’ve posted a 10-year chart to show its price action upon reaching its 300-day MA, which it seems to respond pretty well to when tested as support or resistance.

However, when we look at momentum (not shown), it seems there could still be some room for silver to run as the indicators I watch aren’t showing any types of divergences and one still isn’t oversold quite yet. So while some type of consolidation may make sense for silver, it doesn’t mean it has lost all of its juice. As we saw in October 2011 and Feb 2012, silver broke past its 300-MA but soon retreated back below it. We’ll see if today is any different.

Has Silver Bottomed Out?

Posted on July 11, 2012 by Andrew Thrasher

Hi Ho Silver!

Silver has created an interesting chart these past few weeks. With that, I’m going to dive into three characteristics and reasons why I find silver so interesting.

First up is momentum, the spot-price of silver has created a positive divergence with its relative strength indicator. With each new low, or test of the previous low, the RSI has not followed suit in dropping like a rock, indicating the depreciation in the price of silver may be on its last gasp.

Second, we have volume. I’ve drawn a trendline on the volume panel to show how volume has fallen off since it hit $26/oz. However, as the On Balance Volume (OBV) indicator shows us, the share volume on down days is still outpacing share volume on up days (which causes OBV to fall), indicating negative volume pressure when it comes to this shiny metal.

Finally, we have a defined support level of $26/oz. which we hit in September and December of last year and most recently in June of this year. This support level will need to hold for any chance of a rally in silver.

There you have it. Silver very well could break through $26, which would likely see a pop in heavy selling volume as this support level is no secret to many traders. However, with momentum not mirroring price action, I’ll be watching to see any signs of buying volume picking up.