Silver is still affordable for small investors as the price of one ounce of gold reached more then $1600, where silver is still at a price next to $30. Silver also has direct liquidity and the general sentiment for silver price in 2013 is still bullish.
In 2012, the demand for silver for industrial and commercial uses increased to reach 43% and this demand is expected to rise in 2013 especially from far-east markets like China, where jewelers demand is booming lately.
Because of the public debt crisis in US, and the Euro zone crisis in Europe, investors are searching for safe heaven investments and silver represents an affordable choice for small investors and big investors. As much as the US dollar will lose value, silver prices will advance more and this year it might retest the highest high of 49.70 after passing the support levels 37.49, 44.20
By studying the daily chart for silver price on the long term, we find that the price rises in a major upside trend carried by the bullish trend line shown clearly on the following chart:
We notice that the price managed to lean recently on this bullish trend support, to bounce to the upside normally and resume the positive track, while the main waited target now is attacking the critical resistance at 34.00, which represents the confirmation gate to continue with the gains trip on the short term and medium term, and the image above shows the suggested scenario.
Stochastic is supporting our positive overview well, providing bullish trend signals on the daily timeframe, which offers a positive motive for the price to reinforce the chances to rally to the upside, heading towards the first mentioned target.
To summarize the technical overview, the bullish trend will be preferred for the upcoming period, but the price has to surpass some critical resistance barriers to ease the bullish trend mission, the key levels are represented by 32.45 followed by 34.00, to extend with our positive targets towards 38.00 then 40.00 on the short term, while we go further targeting the historical high recorded near the $50.00 barrier, this level represents the main technical target for this year.
On the other hand, we must take into consideration that breaking below 29.15 will stop the suggested positive scenario, while breaking 26.10 will damage this scenario and leads into major turn to the trend into the downside.
Many thanks to my friend Tony Fata for covering the fundamental part of this report