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Silver Destined to Break Multi Year ResistanceWhat a time to be a trader...and what a day! U.S. markets gapped up and held their gains throughout todays session after Moderna, Inc. reported positive phase 1 results of a potential Covid-19 vaccine. Could it really be that simple for the bulls? It'll be interesting to see how the market reacts when the Fed Chair Jerome Powell speaks at a scheduled Senate hearing tomorrow. Perhaps the Dow rips another 1000 points or maybe, just maybe the long side is getting too crowded? More on this on upcoming posts. Today, I wanted to go over Silver . It's Happening! 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 daily chart 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. RSI is approaching overbought levels, so any price action higher would lead to bearish 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 bullish 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 SMA and experienced a bullish MACD 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!
COMEX:SI1!Long
by DailyClose
Silver Could Outperform Gold in Coming WeeksToday is the big day! The Bureau of Labor Statistics releases the unemployment number at 8:30AM EST. As I am writing this post, U.S. index futures are pointing up and so are Gold and Silver . This morning I'll be touching upon the CBOE Volatility Index (VIX) and Silver Futures (SI!). The VIX Bears will be watching the VIX closely today and they should be. Below is the monthly chart of the VIX. Is it possible to build a bearish case for major indicies with the VIX? Maybe. It's a difficult instrument to chart when using indicators. So instead, I like to use the line chart to cancel out the noise. Notice how support and resistance comes out more cleanly. Lastly, if you follow the URL below is an image of how the Put/Call ratio is now at its lowest point since early March. Sentiment in the market could be getting overly bullish. stockcharts.com Short term, I could see a rise on the VIX. Bias: Bullish . Silver or is it a Slug? I've been reading a lot of articles on Gold and how Silver is a major laggard. It's true, Silver moves a hell of a lot slower than Gold. However, that could be changing soon. The chart below is the weekly view of Silver Futures. The sell off in March in my view was the definition of a terminal shakeout. Price should not retest those lows. If it did it would be bearish. There is strong support between 13.70 - 14 and dips are for buying. On the chart I highlight the divergence between price and Chaikin Money Flow (CMF) during the sell off in March. Though, a technician should not use CMF by itself. Confirmation is required when a divergence like this is spotted. Here I am looking at MACD to confirm the CMF bullish divergence. Silver may be a few weeks away and could potentially outperform Gold. I'll be keeping an eye on this one! Bias: Bullish . Happy Friday everyone and good luck trading the employment numbers this morning!
COMEX:SI1!Long
by DailyClose
Silver Weekly Chart - Confluence of Resistance AboveSilver needs to break through a series of strong resistance zones in order to continue uptrend. First off there is the horizontal resistance from around $16.05 to $16.25 which intersects with the bearish trendline from the 2016 high. Price was rejected after entering this zone the last week of January. Pending price breaks above this zone it is faced with the Weekly 200 MA and the rising trendline which dates back to 2008. The monthly 200 MA, not shown on this chart comes in at $16.46. A convincing move up to the $17.00 range is needed to extend the bullish rally. I understand and support the bullish stance on precious metals. The looming global recession, trade wars, stock market bubble, QE, Brexit. The list goes on.... Still though DXY looks poised to rise considering the weakness in all the other major currencies. Be cautious chasing prices higher.
COMEX:SI1!
by cccpKGB1
Silver will make its move very soonSilver markets have been in consolidation mode for over four years and that looks like it is about to end. The silver market has been consolidating at the 78% retracement mark from the October 2008 low of $8.4 to the April 2011 high of $49.82. The market has been toeing the 200 month moving average for support and the 50 month moving average as resistance. The monthly volume has been increasing for the past two and a half years with prices trading between $13.62 and $21.225 in this time period. I am expecting a breakout this month or possibly July at the latest. The last time silver boomed and busted, in the early 80's, the market took 30 years to trade back up to the highs and make all time new highs. I would argue that 1980 high, of around $41.50, was artificially inflated due to a cornering of the market by the Hunt brothers and should probably not have traded above $15 or so. There were rumors on the Comex exchange of clerks who were hired specifically to scout out when the Hunt brothers were walking to the exchange and the clerks would run back to their brokers and tell them so their brokers could get long before the Hunt brothers entered the trading pit and began buying. The recent period when silver made a new all time high, the run up from 2003-2011, was exacerbated by quantitative easing and the expectation of future inflation through dollar deflation. I would expect silver to start to break out of this symmetrical triangle by the end of July at the latest. The market should find resistance at 17.30, 20.40, and 24.30 area. Support can be found 13.60, 12.30, 10.60 and 8.40 regions. If I had to take a guess, I would expect the market to move higher. I would look for two weeks of settling outside the triangle before entering the market either way. Remember, silver markets are settled every day at the weighted volume average price of the trading between 1:24-1:25 eastern time so the weekly settlement occurs on Fridays between 1:24-1:25.
COMEX:SI1!
by ngordon
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