This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Silver Has a Bullish Bent

Stocks in this article: SLV BVN PAAS

NEW YORK ( TheStreet) -- Silver is poised to take off this week on technical indicators and fading concerns over the global economic recovery as the metal is more closely tied to industrial activities than gold.

A string of data releases are expected from the G-7 and Asian countries this week, with the U.S. expected to show mixed negative economic data in the form of an increasing budget deficit, lower industrial production, and mounting jobless claims.

The dollar could lose ground on a few disappointing economic indicators. But the dollar could remain well-supported against the euro as a ZEW survey shows deteriorating economic sentiment in Germany and Europe. Overall, the dollar will likely trade sideways to negative during this week, having a limited impact on silver prices.

COMEX silver futures for December delivery traded rangebound last week, easing close to the opening level. Support is withholding an upside view at $19.55 levels. As long as silver holds above this breakout level it's expected to show a bullish trend for the week. The formation of an "ascending triangle" pattern indicates a bullish trend. In addition, the moving average convergence divergence, or MACD, is treading above the "0" median line, implying continuation of the upside potential.

Silver fell last week, tracking gold and base metals. LME base metals trimmed more than 1%. The gold-silver ratio rose marginally to 62.87 from 62.76 as silver prices stalled more than gold. Silver's investment demand was bullish as the world's largest silver exchange-traded fund, iShares Silver Trust (SLV), accumulated 30.44 tonnes last week, taking its total holdings to 9,307.17 tonnes.

Silver for spot delivery on the COMEX closed at $19.89 an ounce, while December futures ended at $19.80 an ounce, indicating backwardation in silver prices. Similarly, COMEX gold for spot delivery closed at $1246.30 an ounce, while December futures ended at $1245 an ounce, signaling that gold prices are in backwardation as well.

The calendar spread between silver Sep'10 and Dec'10 futures contracts closed at negative 0.043, revealing that the far-month contracts closed higher than the near-month contracts. Meanwhile, the calendar spread between gold Oct'10 and Dec'10 contracts closed at negative 1.50.

All major silver producers gained last week except Compania de Minas Buenaventura (BVN), which declined 3.7%. Pan American Silver (PAAS), Silver Wheaton (SLW), and Coeur d'Alene Mines (CDE), led the pack gaining 5.9%, 3.2% and 3.1%, respectively.

Meanwhile, Mag Silver (MVG), Endeavour Silver (EXK), Silver Standard Resources (SSRI), and Hecla Mining (HL) were up 3%, 2.1%, 0.7% and 0.2%, respectively.

Karvy Global Services (, a subsidiary of the Karvy group (, provides specialized research in asset classes including stocks, mutual funds and insurance to leading Wall Street firms.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs