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After February's rally, a needed 'pause that refreshes'

Clif Droke SSR snippet
March 21, 2005

Below is an extract from Clif Droke's latest Silver Strategies Review. You can subscribe to the Silver Strategies Review here,

When we last looked at the price of silver last month it was hovering around the $6.50 level and all indications were that silver had become deeply oversold and was primed for a relief rally in coming weeks. Silver subsequently took off to test the $7.50 resistance area and ended the week of March 18 at $7.39.

Silver is now above its vital 10-week, 20-week, and 30-week moving averages with the 10-week MA trending higher. This indicates that silver's short-term trend is still technically up, although the past couple of weeks have seen silver consolidate its recent gains.

The white metal still looks like it has supply-related issues to deal with in the month ahead and there are likely to be some bumps in the road along the way, but a test of the $7.75-$8.00 area in coming weeks is possible based on the charts.

Pivotal support for silver should be monitored closely in the coming weeks during pullbacks. This support is at the $7.00-$7.10 area where the 10-week moving average intersects the 30-week MA.

Lots more follows for subscribers. You can subscribe to the Silver Strategies Review here,

--Clif Droke
Publishing Concepts
website:
http://www.clifdroke.com/
email:
clif@clifdroke.com

Clif Droke is the editor of several subscription services including:

1) The Gold Strategies Review, a monthly forecast & analysis of gold and silver futures and precious metals stocks. Published online. $200/yr.

2) The Durban Roodepoort Deep (a.k.a. The DROOY Report) for traders, published online every trading day. Aimed at serious day and short-term traders of Durban Deep and followers of the XAU & HUI index. DROOY Subscribers are billed monthly $50/month. Two week 'trial' subscriptions now available $25, here.

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