Yes, we told you so! More than a week ago we mentioned how Silver could potentially begin to out perform Gold in the coming weeks. Well, it has! Already out performing Gold by nearly 10% since last Thursday. Sure, Gold is up significantly over the last year but, the reason why I am so excited is because Silver could just be getting started. Want the proof? Let's take at some charts below.
Above is the of Silver . Currently Silver is getting rejected off a six month cluster of resistance. It wouldn't surprise me if price took a breather before heading higher. is approaching overbought levels, so any price action higher would lead to divergence potentially requiring resolution. Stacking bids at the support highlighted would serve as optimal entires.
Next, is the weekly chart of silver (see below). Notice how I have't updated resistance #1. Yes, we broke above it, but we haven't had confirmation of support. This will likely end up being support but in trading you never take things as 100% certainty.
I also added a comment in between stating that the current range silver is trading within could be considered a no trade zone. What I am getting at is not to FOMO. Be smart on your approach. Let price consolidate and provide us with clear entries. With that said, if Silver does continue to rip higher, a daily close above the resistance #2 which coincides with a major descending trendline could be a breakout entry. Of course, practice good risk management by using stops.
The most signal in more than a decade may be on the monthly chart below.
Above, you'll see the last two instances when Silver was either at or crossing the 20 and experienced a cross within the positive territory. Yup, It's happening again! Will history repeat itself? I am betting that it will. Bias: Bullish.
More than Silver
Alternatives to buying Silver are ETFs and also silver miners. I'll be touching up these stocks in upcoming posts.
Have a great evening and happy trading!