Silver Closes Over $30, China Cuts Rare Earth Export Quota

Congratulations to silver investors, silver closed above $30 once again on an overdue extension from the 20 day MA. Though the volume wasn’t quite as high as I expected, price activity did exactly what I had been predicting over the last several days.

Spot Silver

iShares Silver Trust Up on above average volume.

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I expect the volume to pick up tomorrow – and don’t be surprised if we take out the 30 yr high and possibly even close above it.

The top point of the wedge is $30.67 while the bottom is $27.97 and the breakout point is 29.24 which was the opening price today.

Therefore,

$30.67 – $27.97 = $2.70

$29.24 + $2.70 = $31.94

I believe the price target I’ve set for January was $32, you can see that the price target set by the wedge agrees.

In other metals news, Rare Earths had a big day as China cut its rare earth export quota and almost all of the sector was up substantially. Great Western Minerals finished up 12.5%, Rare Element Resources finished up 10.32%, Avalon Rare Metals finished up 9.91%, and Lynas Corp finished up 11.73%.

Only Molycorp finished lower as they reversed midday after being up by 7.7% at one point and eventually closing down 1%. The reversal was dramatic and covered a lot of ground but did not manage to become a key reversal and it also left a 14 day and an 11 day trendline intact. I expect some consolidation of the stock, but remain bullish about the company’s future.

About Aaron Basile
Day Trading and Swing Trading Ideas, Certified Personal Trainer, Power Bodybuilding, Avid Sports Fan (NBA, NFL)

4 Responses to Silver Closes Over $30, China Cuts Rare Earth Export Quota

  1. Pingback: Tweets that mention Silver Closes Over $30, China Cuts Rare Earth Export Quota « Aaron Basile -- Topsy.com

  2. Pingback: Kentura » Rare Earth

  3. Rene from Cape Cod says:

    I am fortunate to have invested in physical silver for a while now and it’s great to get Aaron’s perspective via Email. It’s over my head sometimes but most of it I can understand.

    Thanks, Aaron,
    Rene

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