Silver.(FINANCIAL MARKETS)

September silver futures on Comex hit a new fiveweek high on Monday, at $7.33 per ounce. Price action Tuesday saw a corrective profit-taking pullback from recent solid gains. A four-week-old uptrend is in place on the daily bar chart for September silver futures from the July 1 low of $6.85.

It is prudent for traders of all trading time frames to examine longer-term price charts to gain that important biggerpicture price perspective on a market. The weekly continuation chart for nearby Comex silver futures shows a potentially bullish ascending triangle pattern has formed. A price move above the April 2004 high of $8.211 would be considered a major upside breakout from that triangle pattern. Upon an upside breakout from that chart pattern, measuring implications from the pattern would project an upside objective of around $11.00, basis nearby futures.

A look at the monthly continuation chart for nearby Comex silver futures shows an uptrend line is in place from the November 2001 low of $4.026 per ounce, basis nearby futures. A push in nearby silver futures prices above the April 2004 high of $8.211 would he a powerful bullish signal that would suggest much bigger upside potential. That price level is the upper boundary of a long-term sideways trading range dating back to 1991.

The all-time high in nearby Comex silver futures prices was $41.50 in January 1980.

Also, the MACD indicator overlaid on the monthly continuation chart for nearby silver futures has produced a warning signal to the bulls.

Editor's Note: In lieu of our regular weekly commentary, we are publishing the latest issue (8/4/05) of our bi-weekly newsletter, Trends in Futures, which is written by veteran futures markets analyst Jim Wyckoff. The referenced charts are included as an insert in this week's issue. Trends in Futures (TIF) examines the major futures markets with an eye on the longer-term picture. Subscribers to TIF also receive comprehensive daily updates each weeknite that look at shorter-term trading opportunities. Jim also puts out three trade recommendations every week with entry and exit points. An added feature of TIF is an educational section where Jim writes about trading theory and practices. For more information, call us toll-free at 1-800-221-4352.

 
SYMBOL=SIU 
 
SEP.05 SILVER (COMEX) 
 
Each Horizontal Line = 10 Cents 
 
1 Cent = $50   Minimum Move: 10pts(.001) 
 
FND: 8-31-05   LTD: 9-28-05 
 
OPTIONS EXPIRE: 8-25-05 
 
   High       Low 
 
04/06/04   11/03/03 
 82650      50210 
 
14-DAY RELATIVE ...