Silver completed a successful retest of the breakout at $15 on SLV and moved higher this week on over 2x average volume. This is the classic buy point “B” shown on the second chart below in Stage Analysis where the second best time to take a low risk entry is on a retest of the breakout.
A lot of people are going to start making predictions on the price of gold and silver and call for tops if they are bearish or say that a new multi-year bull market has begun if they are bullish. Remember that from 2009-2011 gold and silver had an epic multi-year run, but in 2016 the massive gold breakout was cut short to just a few months. Even though we have a classic Stage 2 breakout here the “future is uncertain” as Stan Weinstein says below. No one can accurately predict how long this rally will go, but we know from Stage Analysis we are interested in being long as long as gold and silver are rising above a rising 30-week moving average.
Disclosure: I am long SLV.
Checkout my new Stage Analysis Screening Tool at: http://screener.nextbigtrade.com
Checkout my trading videos on Youtube
Twitter: @nextbigtrade
The original article and much more can be found at: https://www.nextbigtrade.com
The views and opinions expressed are for informational purposes only, and should not be considered as investment advice. Please see the disclaimer.