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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (37574)	5/25/2009 9:40:07 AM
From: LoneClone	Read Replies (1) \| Respond to of 195220

Silver May Rise to $16 an Ounce on Momentum: Technical Analysis bloomberg.com By Glenys Sim May 25 (Bloomberg) -- Silver may climb to the highest since August as most so-called momentum indicators are “supportive of the upside,” as are moving averages, Standard Chartered Bank said, citing trading patterns. The metal’s 50-week momentum indicator is moving higher, and a break through so-called resistance at $14.62, may lead to a move to $15.08 and then $16, London-based David Barclay, the bank’s commodity strategist, wrote in an May 22 report. A resistance level is where sell orders may be clustered. Other momentum indicators such as the 14-day relative strength index, stochastic oscillator and so-called MACD lines were also signaling a “buy”, wrote Barclay. Silver for immediate delivery rose as much as 0.6 percent to $14.77 an ounce, and was at $14.705 at 9:17 a.m. in Singapore. The metal reached $14.835 an ounce on May 22, the highest since Aug. 14. It last traded at more than $16 an ounce on Aug. 8. Silver’s 20-day moving average is $13.724, the 60-day is $13.143 and the 250-day is $12.968, according to Bloomberg data. The figures give the average value of a security over a period of time, and when a shorter-dated average rises through a longer-dated one, more gains may be in store. Spot silver has jumped 29 percent this year as gold climbed 8.8 percent in the same period. One ounce of gold now buys about 65 ounces of silver, down from a high of 84.39 in October, the most since March 1995, according to data compiled by Bloomberg. “The gold-to-silver ratio is still falling, with the 65.00 target met and a drop towards 58.00 expected next,” Barclay wrote. “The ratio should find support at the latter as this marked resistance in 2007.” To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net Last Updated: May 24, 2009 21:56 EDT