Silver shot up by just over 4% Tuesday — outstripping gold's 1.75% rise by a wide margin — to close at $15.38, above the psychologically important $15 mark. The Fibonacci extension level of about $15.54 may offer short-term resistance. A possible medium-term target is just under $17. The rising 50-day MA has crossed over the also rising 200-day MA, a bullish sign.
The white metal has now broken out of the ascending triangle formed since May 2006 but could return to test the downtrend line in the near future.
Silver is now beginning to rise faster than gold, the MACD of the $GOLD:$SILVER ratio having just made a bullish crossover.
Gold itself has broken out of its rising channel. It could also pull back at some point to test the top of the channel, at which point it would either re-enter the channel or continue its rise in a new channel with a steeper, less sustainable slope.
Meanwhile, the GDX:$SPX ratio has broken out of its own channel, suggesting that precious-metals stocks will continue to outperform the general market for some time to come.
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