Technical analyst Clive Maund charts silver and
discusses the factors that he believes will lead silver upward.
Unlike gold and precious metals stocks, silver did not break out strongly
on Thursday – although it rose, it did not break out at all, nor was volume
exceptional, as we can see on its latest 6-month chart below. However, this
is not a cause for concern, because in the early stages of sector bull
markets gold leads, so we can expect silver to "follow suit"
shortly. This is worth knowing, because it means that it is still possible to
pick up a lot of silver stocks (and ETFs) at knock down silly prices before
it really starts to move.
Silver's latest COT chart, like gold's, is most encouraging too, with the
dumb and wrong Large Specs emboldened to try shorting it again – good luck
with that.
Click on chart to pop-up a larger, clearer version.
Meanwhile the silver Hedger's chart is showing record bullish extremes.
Click on chart to pop-up a larger, clearer version.
Chart courtesy of sentimentrader.com
On silver's latest 10-year chart we can see that the pattern may have
morphed from what we earlier – and erroneously – thought was a downsloping
Head-and-Shoulders bottom into a potential Double Bottom. It should turn up,
especially given what gold and PM stocks did late last week. While this chart
viewed in isolation doesn't look too inspiring, you will feel a lot better
about it after you take into consideration the powerfully bullish COTs and
Hedgers charts that we looked at above.
The conclusion is that it is time to take positions in silver, silver
futures, ETFs and stocks before everyone else gets the same idea. Speculative
short positions in silver are huge and could drive a big spike once silver
really starts to move against them.
[NLINSERT]
Disclosure:
1) Statements and opinions expressed are the opinions of Clive Maund and not
of Streetwise Reports or its officers. Clive Maund is wholly responsible for
the validity of the statements. Streetwise Reports was not involved in the
content preparation. Clive Maund was not paid by Streetwise Reports LLC for
this article. Streetwise Reports was not paid by the author to publish or
syndicate this article.
2) This article does not constitute investment advice. Each reader is
encouraged to consult with his or her individual financial professional and
any action a reader takes as a result of information presented here is his or
her own responsibility. By opening this page, each reader accepts and agrees
to Streetwise Reports' terms of use and full legal disclaimer.
This article is not a solicitation for investment. Streetwise Reports does
not render general or specific investment advice and the information on
Streetwise Reports should not be considered a recommendation to buy or sell
any security. Streetwise Reports does not endorse or recommend the business,
products, services or securities of any company mentioned on Streetwise
Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers,
employees or members of their families, as well as persons interviewed for
articles and interviews on the site, may have a long or short position in
securities mentioned. Directors, officers, employees or members of their
immediate families are prohibited from making purchases and/or sales of those
securities in the open market or otherwise from the time of the interview or
the decision to write an article, until one week after the publication of the
interview or article.
Charts provided by the author.
CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data
available to him, at the time of writing. Mr. Maund's opinions are his own,
and are not a recommendation or an offer to buy or sell securities. Mr. Maund
is an independent analyst who receives no compensation of any kind from any
groups, individuals or corporations mentioned in his reports. As trading and
investing in any financial markets may involve serious risk of loss, Mr.
Maund recommends that you consult with a qualified investment advisor, one
licensed by appropriate regulatory agencies in your legal jurisdiction and do
your own due diligence and research when making any kind of a transaction
with financial ramifications. Although a qualified and experienced stock
market analyst, Clive Maund is not a Registered Securities Advisor. Therefore
Mr. Maund's opinions on the market and stocks can only be construed as a
solicitation to buy and sell securities when they are subject to the prior
approval and endorsement of a Registered Securities Advisor operating in
accordance with the appropriate regulations in your area of jurisdiction.