Silver May `Move Quickly,’ Rally 15%, to $24 an Ounce: Technical Analysis

Silver may rally another 15 percent in the next few weeks to $24 an ounce, which would be the highest price in 30 years, according to technical analysis by Gold Arrow Capital Management.

Silver futures jumped to $21.025 today on the Comex in New York, the highest price since in 30 months, before settling at $20.816, the highest closing price since Oct. 16, 1980.

“Today’s close is a bullish signal for silver,” Gijsbert Groenewegen, a partner at Gold Arrow, said in an interview from New York. “When these moves happen, it really starts to move quickly. It’s not difficult to propel the price of silver once you get a strong bullish sign like this. Silver is not a very deep market.”

The metal is up 24 percent this year, heading for the second straight annual gain. Last year, futures rallied 49 percent, the most since 1979. The last time price reached $24 was in September 1980.

“People are looking at gold and silver as the ultimate hedges for when all other assets don’t function or don’t provide returns anymore,” Groenewegen said.

Gold futures traded on the Comex climbed to an all-time high of $1,284.40 an ounce today. Silver touched a record $50.35 in January 1980.

In technical analysis, investors and analysts study charts of trading patterns and prices to predict changes in a security, commodity, currency or index.

http://www.bloomberg.com/news/2010-09-17/silver-may-move-quickly-rally-15-to-24-an-ounce-technical-analysis.html

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