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Silver Futures Commodity Chart Analysis 13 Sep 2010

The technical picture for silver futures remains firmly bullish as evidenced on the daily chart for the December contract, and despite Friday’s minor pause the metal looks set to continue higher and break above the $20.2 price point established in last week’s trading.  This morning’s price action has seen the December silver futures contract once again trade to the upside as we hover just below the $20 per ounce price handle, trading at time of writing at $19.98, up 0.14 in this morning’s session.  The 9 day moving average continues to provide excellent and, sustained support, to the move higher which was first signalled with the breakout from the sideways consolidation in late August following the summer doldrums.  The longer term picture for silver remains firmly positive and indeed the technical picture is currently given further support from the risk on appetite of equity investors which is moving global indices higher with most markets having extended their gains into a third weeks since the rally in early September.  As a result this is fuelling an expectation for increased for the industrial metal and helping to push prices higher as a result.  In the short term on the daily December silver futures chart we do need to see a break and hold above $20.20 and once this has been achieved, should propel the industrial higher as it looks to exploit the solid platform of support created in the price region.