From the Desk of Ian Culley @IanCulley
The buzz around gold’s new all-time high is growing – and for good reason.
New all-time highs will likely become a regular occurrence in the coming quarters.
But while gold makes headlines, my attention is on silver mining stocks…
Check out the Silver Miners ETF $SIL carving out a potential double bottom:
SIL is printing fresh six-month highs as it trades back above its June peak.
I consider it a breakout.
Completing this near-term base will likely catapult these stocks through the polarity zone and the double bottom breakout level.
I like SIL long – only if it’s above 28 – targeting 40 in the coming quarters.
Perhaps the upside objective sounds a bit overzealous.
But when we zoom out, it’s clear that SIL has serious ground to cover before reaching those former 2020 highs:
In fact, the 55 level marks a logical target for a longer-term position.
Consider it our secondary target. If gold is bouncing to a steady beat of new all-time highs, SIL is running back to that decade-long resistance zone.
It’s the perfect environment for these stocks.
And if SIL is working, you better believe the precious metals space is enjoying a broad bid, as a continual flow into these high beta names will increase with risk appetite for metals.
Be sure to check out this week’s video covering the individual mining names that are breaking out and those on the verge of following the leaders.
As always, stay tuned.
Click here to watch this week’s Gold Rush Video:
Thanks for reading.
Let us know what you think. We love hearing from you.
And be sure to download this week’s Precious Metals Report below!
Allstarcharts Team
