Friday, April 22, 2016

Market Watch: SLV

Silver may be finally coming out of its multi year slide, and seeming ancient sideways consolidation.  What happens to a stock as it moves sideways is like wringing a towel dry, soaking it, then repeating. Each time the towel is wrung dry of new buyers and old sellers, eventually all of the potential sellers are wrung out.

Take a look at the 52 week chart for the silver ETF, SLV. After a near decade of loss and sideways movement the 200 day moving average is finally flattening out and turning up. Does this guarantee that silver will avoid the single digits and go higher from here? Nope,  but it is a necessary condition. 

The mining stocks are already leading the charge as they typically do. My EXK has gone up to over $4 from where I bought in at $2.67. This will allow me to add on locking in a breakeven trade.

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