You guys remember silver (SLV)? It was that shiny metal that everyone loved back in 2011. You know, the one that was going to rally forever but then didn’t?
And now everyone hates it. How do you not love market sentiment? Supply and demand is a beautiful thing, and if you don’t learn to appreciate it and find the humor in the whole thing, you’re not having any fun.
So let’s amuse ourselves for a hot minute and talk about silver. Quietly this guy’s been putting in a serious 3-month base. And this base isn’t just coming at some random level. This selloff has stalled right at those 2009-2010 resistance levels that also turned into support last summer. Check out this weekly chart. Don’t tell me polarity doesn’t exist and this is just a giant coincidence:
Here’s a closer look at Silver futures breaking this downtrend line from over a year ago. This is a line chart to keep things clean and simple:
Now look at this base on the daily candlestick chart. Nice breakout, huh?
It looks to me that, as long as Silver prices stay above $20.40, these guys are going a lot higher. The hatred in this space lately has been epic. The sarcastic tweets about the returns in precious metals last year have been overly obnoxious. That’s the sort of sentiment unwind that really gets me going in the morning.
So we get to buy silver again. How cool is that?