Silver Breaks Out, Haven’t Seen This In A While

74

Silver Breaks Out, Haven’t Seen This In A While

Hedged Silver

This chart from Sentimentrader.com looks at silver’s hedged positions. At this time, a very crowded trade is in play at an 18-year extreme. If history is a guide, silver is currently closer to a short-term low than a high.

Silver, gold and Mining stocks have not had much fun this year, as all have declined by a large percentage. The fall off in silver and the SLV:GLD (NYSE:GLD) ratio have created potentially bullish falling wedge patterns over the past few months.

Silver Breaks Out, Haven’t Seen This In A While

iShares Silver Trust (left), SLV:GLD Ratio

This week, SLV and the SLV:GLD ratio are working on short-term breakouts while momentum is deeply oversold.

We sure haven’t seen this price action in a while.

LEAVE A REPLY

Please enter your comment!
Please enter your name here