Another Reason to Look for a Precious Snapback

As I alluded to in my blog post last night, the precious metals and miners appear to be on the cusp of a more viable snapback rally than what we saw last month. To be sure, the entire space pretty much moves in unison. So, playing the relevant ETF’s mostly makes sense.

Looking at the silver ETF daily chart below, you can see that unless bulls give it up here by the close we could easily have a bullish engulfing candle (similar comments apply to miner Silver Wheaton). Combine that with a bullish RSI divergence (top pane) and MACD successful backtest (bottom pane) and this move should have legs.

Recall, however, that the metals and miners remain in established downtrends, which means the rallies are likely to be fast, violent, exuberant…and ephemeral.

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