Silver Market Update
Source: Clive Maund (11/30/09)
While gold has soared in recent weeks silver has put in a plodding performance unable, thus far at least, to break above the zone of major resistance and the return line of the uptrend channel in force from late last year. . .
The failure in recent weeks to "open out" the uptrend channel by advancing more strongly, which we had been looking for, means that the potentially bearish convergence remains - it is a Rising Wedge, and a breakdown from this channel, should it occur, would obviously be bearish and a sell signal. Such a development would likely follow on from a dollar upside breakout and strong advance which would be associated with another deflationary downwave developing. This scenario, which technically looks increasingly likely, is discussed in the Gold Market update, which includes an analysis of the latest dollar charts.