spot silver

Spot Silver 5 Oct 2010

The spot silver price surged higher today at an alarming rate, trading at time of writing at $22.88 per ounce and showing little sign of any kind of pullback.  Needless to say spot silver has been helped higher by the continuing collapse of the US dollar, the pull through effect from gold which is now attracting new investors such as pension and insurance funds, as well as demand from individuals priced out of the gold rally.   The question now, of course, is just how high will spot silver fly?  From a technical perspective there is nothing on the daily, weekly or monthly charts to suggest that spot silver is ready to pullback as the price trades strongly above all the moving averages.  We must simply wait and watch for the appropriate signal such as a shooting star or long leg doji candle which would indicate that this present rally is beginning to run out of steam.  Until then just enjoy the ride moving your stop loss as you bank your profits.