Silver Breaks Out Above Key Downtrend Line
- Posted by JC Parets
- on February 14th, 2014
You guys remember Silver??? It was that shiny metal that everyone loved back in 2011. You know, the one that was going to rally forever, but then didn’t?
And now everyone hates it. How do you not love market sentiment? Supply and Demand is a beautiful thing and if you don’t learn to appreciate it and find the humor in the whole thing, you’re not having any fun.
So let’s amuse ourselves for a hot minute and talk about Silver. Quietly this guy’s been putting in a serious 3-month base. And this base isn’t just coming at some random level. This sell-off has stalled right at those 2009-2010 resistance levels that also turned into support last Summer. Check out this weekly chart. Don’t tell me Polarity doesn’t exist and this is just a giant coincidence:
Here’s a closer look at Silver futures breaking this downtrend line from over a year ago. This is a line chart to keep things clean and simple:
Now look at this base on the daily candlestick chart. Nice breakout huh?
It looks to me that as long as Silver prices stay above 20.40 these guys are going a lot higher. The hatred in this space lately has been epic. The sarcastic tweets about the returns in precious metals last year (even by my close friends) has been overly obnoxious. That’s the sort of sentiment unwind that really gets me going in the morning.
So we get to buy silver again. How cool is that?
REGISTER HERE if you’re interested in receiving information on how to access this research on a weekly basis.
Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.blog comments powered by Disqus
J.C. Parets is the Founder & President of Eagle Bay Capital, LLC. He is a 10-year veteran and Market Technician who actively manages money incorporating Technical Analysis and Behavioral Finance into his practice. JC’s work has been featured regularly on CNBC, Fox Business, Bloomberg, Business News Network, Wall Street Journal and Yahoo Finance among many other financial media outlets. More...
- These Are My Favorite Follows on Stocktwits
- Technical Analysis Only Looks At The Past….
- An Open Letter About Today’s Market Environment 11-24-15
- What Is The Value Line Index Telling Us?
- We Don’t Live In An Average World
- Flat 200 Day Moving Averages Create Headaches
- An Open Letter About Today’s Market Environment
- Why Airlines Are Ready For Another Leg Lower
- Is FANG This Cycle’s Four Horsemen?
- Why I Like To Feed The Ducks When I Can
Archive by Year