Silver Bulls Taking a Beating, Need to Come Out Swinging in 2014

By Jim Wyckoff of Kitco News
Thursday December 12, 2013 9:16 AM

(Kitco News) - The longer-term monthly charts should be an important component in the plans and methodology of every trader/investor. Reason: The monthly charts show historic highs and lows (which are also major technical resistance at support levels) that are guideposts for markets that are experiencing strong price trends. Indeed, market prices, when they are trending, tend to gravitate toward those longer-term highs and lows seen on the monthly chart.

See on the monthly continuation chart for nearby Comex silver futures that prices are presently in a major downtrend and the bears have the strong technical advantage. Nearby silver futures prices are moving close to the 2013 low of $18.185. A downside breach of that key chart support level would produce even more serious technical damage, to then suggest a challenge of psychological support at the $15.00 level, or even the major psychological support level of $10.00 an ounce.

For the silver market bulls to gain some longer-term technical strength and to suggest the market has finally bottomed out, they will have to push nearby Comex futures prices back above strong chart resistance at $25.00, which would negate the powerful downtrend line presently in place on the monthly chart.

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By Jim Wyckoff, contributing to Kitco News;

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
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