Silver in AUD has seen the ‘fat part of the trade’

My July 25, 2022 note alerted readers that Silver, as priced in Australian Dollars, was triggering a weekly Oversold signal.

That day, was the low.

Silver was bought at A$26.93. The secondary buying level of $25.40 wasn’t touched.

Today, Silver in AUD is trading at A$33.92

I’d say that a 26% advance for a precious metal within 6 months is quite an adequate return.

(incidentally, AUD Gold rose 12% over the same time)

Whilst it’s still in a bullish trend, I think it is nearing the end of this advance.

I wouldn’t be initiating a new ‘long’, instead I’m in the mode to sell.

I’m seeing Silver becoming tired and a ceiling around the A$38.00 mark.

I may not wait for $38.

If AUD Silver can’t break $37.08, then probability when coupled with current, near term resistance lines suggests that a new extended, upward leg in AUD priced Silver is low or a marginal (and dangerous) bet for those initiating ’new longs’ from here.

January 19, 2023

by Rob Zdravevski

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