Thursday, September 15, 2011

Silver getting ready for a breakout [By JON and DON VIALOUX, Technical Analysis; Financial Post September 14, 2011]

The period of seasonal strength in silver is approaching. How is the seasonal trade lining up this year?
Equityclock.com notes that the period of seasonal strength for silver during the past 20 years has been from Sept. 16 to April 11. The "sweet spot" is from the end of October to the end of February. The trade has been profitable in 14 of the past 16 periods including 10 of the past 10 periods. Average return per period during the past 10 periods was 22.9%.
Seasonality in silver is influenced by an increase in industrial demand during its period of seasonal strength. About 40% of silver is used industrially - in solar batteries, water purification systems, cellphones, circuit boards, plasma televisions and radio frequency indentification devices (RFIDs).

Read more @ ORIGINAL SOURCE


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