Silver Fights Intraday Reversal, Closes Higher On Good Volume

Silver opened higher and fought off the lows twice intraday which had the price slightly lower thatn yesterday’s close, but a lot of buying volume came in and spot closed up $.47 (1.68%). I think that last week’s lows of $26.38 is an absolute bottom and below I’ll explain why.

There are several reasons as to why I believe the bottom has been put in this market:

– Silver made new lows below the previous pivot point of $26.50 then reversed last friday on high volume to close out higher on the week
– Today, it closed above the 20 Day MA, and the top trendline which had been a moving resistance level for the month of January
– During today’s session, silver fought two attempts from bears to push the price into negative territory and after that the price surged up and above 1% with much healthier volume backing from SLV.
– The MACD is a day or two away from a bullish crossover
– The RSI and the slow stochastic have plenty of room to move higher and are coming out of a rounded bottom

This is about as short of a technical analysis as I’ll do, but it’s an important one. Load up on mining shares and physical bullion!

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About Aaron Basile
Market Technician, Equity/Commodity Trader, Austrian Economist, Contrarian Investor

One Response to Silver Fights Intraday Reversal, Closes Higher On Good Volume

  1. Pingback: Silver Completes Cup And Handle Breakout « Aaron Basile

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