The metals bulls sure must have felt like “third wheels” for some time now, as the main precious metals were grinding through fifteen month-plus consolidations all the while Treasuries and equities overall marched higher. Today, though, silver is making a move with a pretty good buy volume pace to boot. The first chart below is of the daily timeframe for SLV, the main silver ETF. Price is trying to lift out of that short-term consolidation, as the 50 day moving average tries to smooth out below. Of course, the 200 day moving average overhead remains in steep decline, which is likely a sign to not get too giddy just yet for an potential uptrend. Nevertheless, silver bulls need to start somewhere.
The second chart below is of the weekly timeframe. Note that the major 2010 breakout remains intact, and that the consolidation since the spring of 2011 has been a tedious one. If the metals are going to have a late-summer, early-autumn run, there should be plenty of time to find a quality entry point. I am looking for a series of higher lows to be put in if silver can must a strong rally from here. In addition, silver miners such as SLW have seen powerful moves in recent weeks, and I am especially looking for a major higher low there.
Also note that while gold is not quite as strong as silver today, I expect both major precious metals to move in tandem if this proves to be the start of a fresh, sustained rally.
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Silver!
yup