Silver Closes Above 50 Day MA, Sets Support With Volume Backing

For the thired consecutive day silver has rejected the $27.50 lows and appears to have now reset support around $27.30. Silver was down for the first half of the day but reversed intraday on high volume to close above the 50 Day MA.

Same story as monday except we’ve now completed the bullish cross in the MACD, and we’re now officially above the 50 Day MA once again. Price activity in the past week has been very bullish and I expect silver to continue higher in February. I’m not certain when we’ll test $31 again but it appears that we will at least try $29 again before the end of the month.

If however, you’ve been following the delivery squeeze rumor, then I guess $29 and $31 may seem like blips if the rumor is true. So far, eveything has gone as predicted and I personally am purchasing more bullion this weekend. It will be interesting to see how this pans out, there is already plenty of talk regarding a shortage of 100oz bars, and the stoppage of silver eagles production. In any event, we’ll all know in a few weeks….

Advertisements

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

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: