Could Silver Be on the Brink of Breakout?
Mike Maroney: Good afternoon! It's Tuesday, October 16th. My name is Mike Maroney and I am coming to you today from the Monex Precious Metals Studio. We're going to do our Silver Centric video today.
Now, interestingly enough, when you're talking about silver, sometimes you first need to look at what's happening in gold. Gold in the last six days traded as low as $1,185.00, but we bounced all the way back up to $1,235.00, which just so happens to be the 100-day moving average. Now, gold tested this 100-day moving average for three consecutive days, but we weren't able to get through. Now, an important signal will be close above that $1,235.00 area in the Deece contract and that could tell us that we have another $20 or $30 dollars upwards in gold and potentially a break out in silver. Now, the reason I say that is, if you look at silver, we're currently in what is known as an inverse head and shoulder bottom. Absolute key resistance in silver sits at $14.85. Now, we've tested this level twice in the last two weeks and we weren't able to get through. Maybe today, what we're going to experience is a little bit of back and fill and as long as silver can hold above that $14.45 area, it looks like we could go back up, test that $14.85, and if we break out... the first target would be the 100-day moving average at $15.35, and the inverse head and shoulder bottom target would be $15.75. So, what do we need to see? We need to see, one, gold close above the 100-day moving average at $1,235.00 and then silver break above the inverse head and shoulder bottom neckline at $14.85, which could give us a nice rally to the upside in silver.
The bottom line right now is it looks like the precious metals are starting to heat up and we could've seen a bottom. Especially, when you look at what's happening in the stock market and the amount of volatility that's kicking into the market. So, now, may be a tremendous time to give us a call here at Monex. So, we can talk about the opportunities that exist in all four precious metals: platinum, palladium, gold, and silver. Give us a call today. Thank you!