3SOF

Silver
Spot silver made a similar false break below support at $12. A rise above $12.50 would indicate that selling pressure is easing, while breakout above $13 would warn of a trend reversal. Failure of support at $12 remains more likely, however, and would confirm the decline to test primary support at $9. Look for signals from silver to confirm those of gold (and vice versa).

Gold & Silver Show Strength.......

Silver
Spot silver is similarly testing the declining trendline. Clear breakout above short-term resistance at $13 would signal the start of a new up-trend — with gold likely to follow. Reversal below support at $12, however, would confirm the down-trend to test primary support at $9. Signals from silver are likely to confirm those of gold and vice versa.

Silver                                  $13.9800              -$0.235           -1.65%

Silver prices gave back most of yesterday's gains as equity markets turned sour. Despite conditions that are normally beneficial for safe-havens, silver is used in many industrial applications and is thus subject to weakness from lower global production. Recently, this paradoxical relationship with gold has begun to resurface and could become more pronounced as the economy turns weaker. Some investors of the metal will find that global weakening in the economy will lead to lowered demand for the metal. In response, they will likely sell their holdings, placing further strain on prices. Strength that would be provided by its safe-haven status could be offset by this. Consequently silver will likely gain modestly in the short-term.

Silver

Spot silver is consolidating between $13.50 and $14.50. Upward breakout would signal a primary up-trend, with a target of $17.00 calculated as 14.50 + [ 14.50 - 12.00 ]. And a bullish sign for gold. Reversal below $13.50, however, would signal another test of primary support at $12.00.

Gold and Silver About to Hit Resistance

Both gold and silver are nearing a resistance line and it looks like a strong selling point unless the US dollar lends a helping hand by continuing its decent.

Right now, keep your eyes fixed on the dollar. If it shows any signs of long term weakness, silver and gold will definitely benefit. But you will also have to take into account the resistance lines.

Silver $14.01

support at $12.50
resistance at $14.60

Bouncing off the 13-Day MA..

Like gold, silver was also able to see a strong recovery after initially pulling back in reaction to the scheduled US economic report flow. Silver didn't seem to be undermined by the economic doubts being raised by the Fed and being reflected in losses in both the equity and copper markets. In fact, rising macro economic concerns seemed to stir up fresh safe gave buying demand in the metals. Silver also seemed to benefit from inflation worries tied to the possibility that the Fed will step up its asset purchases and further flood the system with more Dollars. It also appears that silver was lifted by the sinking Dollar which tends to raise the appeal of physical commodities as an alternative asset. With July silver reaching the highest price level since February and the market pushing through a key level it looks as if part of the gains were chart based."

Silver
Spot silver continues its primary up-trend — an encouraging sign for gold. Reversal below the rising trendline indicates a secondary correction. Respect of support at $14.50 would indicate trend strength — to a lesser extent if the 50% retracement level at $14.00 is respected. The target of $17.00 is calculated as 14.50 + ( 14.50 - 12.00 ).

Silver
Spot silver is undergoing a secondary correction, testing the lower border of its rising trend channel — roughly equivalent to a 61.8% Fibonacci retracement. Respect of the channel border would indicate a healthy up-trend. Breakout below the trend channel, however, would reflect trend weakness; while failure of primary support at $12.00 would signal reversal to a primary down-trend.

Silver...
Spot silver penetrated its lower trend channel, threatening a test of primary support at $12. Reversal above $14 would indicate a false signal — and advance to test the upper channel border. In the longer term, failure of primary support at $12.00 would warn of reversal to a primary down-trend — a negative sign for gold.

Silver
Spot silver rallied to test medium-term resistance at $13.80; breakout from the trend channel indicating that the secondary correction is weakening. Respect of resistance would test support at $12.50. The correction is not over, however, until we see a higher trough followed by a new high. In the long-term, penetration of support at $11.80 would warn of a primary down-trend, while respect of primary support would indicate another test of $16.

Research on Silver Wheaton and Hecla Mining - Hi-Ho Silver!

JOHANNESBURG, SOUTH AFRICA--(Marketwire - 09/03/10) - www.stockcall.com/ offers investors comprehensive research on the silver industry and has completed analytical research on Silver Wheaton Corp. (NYSE:SLW - News) and Hecla Mining Co. (NYSE:HL - News). Register with us today at www.stockcall.com/ to have free access to these researches.

Silver prices have risen throughout 2009 further widening profit margins for many companies in the industry. However, not all companies in the industry are seeing the same levels of success. The underlying commonality amongst successful producers appears to be maintaining a negative production cost. Two of top producers in the industry, Silver Wheaton Corp. and Hecla Mining Co., both boast negative production costs as well as significant profit gains but employ very different approaches: stream and mining. Investors can register for free to access the research reports on Silver Wheaton Corp. and Hecla Mining Co. at www.stockcall.com/SLW030910.pdf or www.stockcall.com/HL030910.pdf.

www.stockcall.com/ is an online platform where investors doing their due-diligence on the silver industry can have easy and free access to our analyst research and opinions on Silver Wheaton Corp. and Hecla Mining Co.; investors and shareholders of these companies can simply register for a complimentary membership at https://stockcall.com/development/stockcall/page.php?name=register.html

The stream approach is much less common than the mining approach. Silver Wheaton employs the stream stratagem, meaning that it buys the silver before it is even pulled from the mine or they buy it from a company that pulled it but was mining for another metal. As much as 80% of the world's silver is discovered while mining for other metals. Silver stream companies save on mining costs and are often able to move more silver volume than mining companies.

Mining companies have the advantage of not buying silver through a third party but these companies run higher operating costs. Many mining companies struggle to maintain negative production costs hurting profit potential while silver prices rise. Visit www.stockcall.com/ to see how companies in this industry have grown over the past years and how they are expected to perform in the future.

If the silver trend continues, both stream and mining companies maintaining negative production costs could widen their profit margins even more. Register now at https://stockcall.com/development/stockcall/page.php?name=register.html to have free access to our reports on the silver industry.

Silver...
Silver broke its 3-year high of $21, signaling an advance to $24*. Twiggs Momentum (63-day) respecting the zero line indicates a strong up-trend.

Target calculation: 19.50 + ( 19.50 - 15.00 ) = 24.00

Silver...
Silver is also expected to retrace to test its new support level at $20. Respect would confirm an advance to $25*. Rising Relative Strength indicates that silver is appreciating against gold (i.e. rising at a faster rate).

Target calculation: 20 + ( 20 - 15 ) = 25

Silver...

Silver is out-performing gold at present, with Relative Strength rising. The rapid ascent runs the risk of a blow-off.

* Target calculation: 20 + ( 20 - 15 ) = 25

Silver...

Silver is likewise testing support at $23. Breakout would confirm a correction — and strengthen any similar move on spot gold. Rising Relative Strength indicates that silver continues to out-perform gold.

Target calculation: 20 + ( 20 - 15 ) = 25