Silver price breaks above $30 and now heading to $50-60?

Posted on 23 August 2012 with 1 comment from readers

slv111

Silver is always the most volatile of metals in terms of price. Today the silver price has broken through $30 an ounce and that is a significant move in the technical charts.

Earlier in August chartist Herbert Moolman highlighted a pennant pattern ,

Pennant pattern is commonly found in charts of financially traded assets. This is the technical analysis of the movement of large assets in a continuous pattern. The price may crack during the initial price movement in pennant pattern but there is always a chance of reversal of the price. The reversal pattern will be signaled by the enhance in volume during the pennant development on contrary to the common decrease. The period of the pattern determines the price variation. For better variation, the pattern will take a longer time to create.  The term flag and pennant pattern are often used alternately, they occur both in uptrend and downtrend. One should focus on upside breakouts in trading, as downside breakouts may mean the price will go down for time being. In the recent past, the price pattern of silver followed gold and crude oil which is a bullish pattern and the pennant observed is Bullish pennant.  the Crypto CFD Trader software is here for your better understanding.

in the silver price chart that could have meant either a rise or a fall in the price, see below:

What we have now is the price breakout that confirms the next move in the silver price is going to be up, and given the established high volatility of the silver price it should be a big one. It could well be a new all-time high above $50 and towards the $60 by the end of September target set in the Old Dubai Gold Souk at the start of the year.

Correction over

The long sideways consolidation from the 50 per cent correction from almost $50 in April 2011 seems to be over and silver is resuming its upward march towards regaining the price it last held 32 years ago.

People talk about the S&P 500 index as looking cheap at 13-14 these days but that is nothing by comparison to a commodity that still trades for less than it did three decades ago. Silver is also still cheap in comparison to gold against which it is always benchmarked and gold prices are rising strongly too.

You won’t get many gifts as an investor this autumn but silver is probably going to be one of them.