So, what’s up with Silver?
The silver chart is similar to the gold chart. After a double top in March, silver has corrected down to about the $16.25 level. The long term trend remains up, but it is unclear whether or not the short term trend is also up. Therefore, I’m not aggressively buying at this time.
PAA.TO – Pan American Silver Corp has been trading in a channel for the last three years:
There appears to be support at the 200 day moving average, and the RSI looks good, so I’m holding what I now own, and will probably increase my holdings with a stink bid around $28 in the unlikely event we have a major correction over the next two months.
SSO.TO – Silver Standard Resources, Inc. is in a more obvious correction phase, and it’s trading below it’s 50 and 200 day moving averages, so for know it’s a hold until we see which direction it wants to go.
The smaller silver plays may be approaching good buy points. For example, SVM.TO – Silvercorp Metals Inc. looks good:
Silvercorp closed Friday within one cent of both it’s 50 and 200 day moving averages, and although there will be significant resistance at the double top level of $10.50, the down trend line from April is now broken, and the RSI is turning up, so I’ll be buying at $8.
FVI.V – Fortuna Silver Mines Inc. is also trending lower, so if you really want to buy, a stink bid at $2 makes sense, although I’ll be waiting to confirm that we have a bottom.
Another interesting silver chart is FR.TO – First Majestic Resource Corp:
First Majestic is making higher lows and lower highs, so something’s got to give. It spiked on Friday above it’s 50 and 200 day moving averages, so I’m putting in a buy order at $4.
Again, my strategy will be to put in stink bids and not chase anything, since I have no idea if we have really reached a near term bottom in silver.
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