The monthly chart for premier silver miner Silver Wheaton is offering more encouraging signs for precious metals bulls. We looked at this chart a few months back, and in the midst of a some sharp selling in the spring and early summer months we saw price find support at prior major resistance (light blue line).
Price has memory, and when you see a chart show sensitivity on a longer-term timeframe to such an important level it shows that the market is going respect significant technicals instead of heading to zero, as many would have you believe.
At a minimum, metals bulls now have a clear level against which to trade, meaning a stop-loss belongs below that $18 level. Of course, that is now quite a ways lower from price.
As I noted late-last week, I would not chase metals or miners higher from here–I expect consolidation, at least, next week.
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Chess have you seen CORN? just went long,,would you say top in $TSN as corn rallies?
Good questions, gator. I will try to do a blog post about both tomorrow.