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Silver News 14 oct 2010

Silver futures picked up the bullish momentum once again yesterday, having paused for breath on Monday and Tuesday, as the commodity markets waited for the release of the FOMC minutes and confirmation that QE2 was indeed likely to be implemented in the near future.  As a result silver futures surged strongly higher yesterday ending the silver trading session as a wide spread up candle which just breached the $24 per ounce level before closing fractionally lower at $23.92 per ounce.  This positive sentiment has spilled over into this morning’s silver trading session with the industrial metal powering higher once again touching an intra day high of $24.95 per ounce but pulling back to trade at time of writing at $24.47 per ounce.  This bullish momentum is firmly supported by the technical picture, with the 9 day moving average in particular, providing a very strong platform of support and the 14 day immediately below.  In addition the 40 day average is now pointing sharply higher and as such the longer term trend remains firmly bullish with the pull through effect from gold, a weak US dollar and investor demand for safe haven assets all contributing to a very rosy picture.  Our initial target for silver futures remains $26.50 per ounce.

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