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Silver Futures Market Analysis 5 Oct 2010

The continued demand for commodities in general and silver in particular, shows no sign of abating with the December silver futures contract surging higher once again today breaking well above the $22.50 per ounce price handle to trade at time of writing.  On the day silver futures have risen 74 cents per ounce, a huge increase, adding a wide spread up candle to an already very strong bullish trend, which has been fully supported by the 9 and 14 day moving averages ever since the breakout of late August which triggered this spectacular rise.  It would be naive to assume that this trend will continue for ever as at some point it is inevitable that we will see a temporary pullback for the industrial metal, even if this is only triggered by speculative profit taking given the recent strong move higher.  However, all we can say from today’s price action is that the bull trend remains firmly in place and until we see a pullback signal such as a shooting star or long leg doji candle the commodity seems set to rise further in the short to medium term.