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Silver Market Update Clive Maund September 20, 2004 The silver chart continues to look shaky and it is very important that the support at $6 holds. The indications are contradictory. On the one hand the violence of the declines that have occurred at intervals this year is bearish, indicating a nervous market populated by aggressive speculators. On the other hand silver is now down on a parabolic rising uptrend clearly visible on the 2-year chart, that should, in a dollar down and gold up scenario, project prices to much higher levels. Silver and silver stock investors have several tactical alternatives. The safest is to wait until the strong resistance at $7 is overcome before making any new commitments. Although this involves missing out on some profits, those that are in prospect are much more assured, as a move above $7 should lead to significantly greater gains and by then the dollar should have embarked on a substantial downtrend. Positions can be taken now, but should be done so with an awareness of the considerable risk of a downside break, and it would be prudent to close out positions on a silver break below $6 as this will involve a clear break of the parabolic uptrend. If another downside break from here does occur it is likely to be dramatic, as on past declines, and potential investors need to be aware of this. Like gold alot rests on the next significant move by the dollar, and there is also the "wild card" of a possible pre-election terrorist attack to consider. September 20, 2004 Clive Maund Clive.Maund@t-online.de Clive Maund is an English technical analyst, holding a diploma from the Society of Technical Analysts, Cambridge and living in southern Bavaria, Germany where he trades US markets. Visit his website at clivemaund.com No responsibility can be accepted for losses that may result as a consequence of trading on the basis of this analysis. Copyright © 2003-2004 CliveMaund. All Rights Reserved. 321gold Inc Miami USA