Thursday, December 29, 2011

Silver to Rechallenge Lows at $26 Overnight?

Live 24 hours silver chart [ Kitco Inc. ]
Silver is plunging again during Thursday's Asian session, currently down .40 to $26.85.  It appears likely that silver will rechallenge the September low of $26.05 overnight, which would be the first hope of a bottom.  Sentiment is currently extremely negative so a double bottom near $26 is possible, but silver's action off of today's low near $26.80 seems to indicate that new lows are likely, with the possibility of silver falling all the way to strong long term support at $22-$23.

Live 24 hours silver chart [ Kitco Inc. ]

Gold is currently holding support of its 3 year uptrend line which currently sits at $1550.  If gold closes below $1550 in the next few sessions look out below, but if it can hold $1550, gold should bottom and begin consolidating.

Live 24 hours gold chart [Kitco Inc.]