Gold Silver Worlds: Silver has suffered a rough year, but its fortunes are changing. In recent months its price has firmed at the convergence of multiple major support zones, a powerful technical launchpad. Silver has soared in parabolic uplegs from the handful of similar past convergences, a very bullish omen. And with silver languishing so low in its trading range relative to gold, it has enormous potential to catapult far higher soon.
After plummeting a brutal 39% in the first half of 2013, silver naturally remains deeply out of favor today. Investors don’t want to touch it with a ten-foot pole, convinced silver will soon roll over to plumb ugly new depths. Investors as a herd always hit peak bearishness after exceptionally-large selloffs, extrapolating the downtrend continuing indefinitely. But when major lows are witnessed is exactly the wrong time to be bearish.
Silver’s bullish price action since late June yet again proves this truth. As 2013’s anomalous gold plunge dragged silver down near $18.50 less than 4 months ago, bearishness was overpowering. Investors and analysts fell all over themselves to forecast much lower silver prices. But instead silver surged out of that ubiquitous despair, blasting 33% higher in just 2 months. Excessive bearishness bred a major reversal.
And though silver retreated in September, any short-term chart shows its young rally remains very much intact. Since late June, this white metal has carved a very definite uptrend. Its series of higher lows defines the first major support zone that is converging into silver’s technical launchpad today. But though this support line confirms a new upleg is indeed underway, it is the least important support zone by far.
The support I’ve been watching with great interest in recent months is secular, much older and stronger. Despite 2013’s ugly selling anomaly, silver remains in a secular bull market. Born way back in November 2001 when silver languished just above $4, it catapulted silver an astounding 1105% higher at best by April 2011! Silver just bounced up from this bull’s same support line that birthed its mightiest past uplegs.
This first chart offers a much-longer-term perspective on silver than most market websites, extending back to 2005 when silver still traded with a $6 handle. Remember that bygone era? Even with this metal so deeply out of favor near major lows today, it is still up 233% since 2005 dawned! The benchmark S&P 500 stock index only rose 44% over that same span. Silver’s bull market is still proving wildly profitable.
Silver’s 2013 selling anomaly had absolutely nothing to do with this metal’s fundamentals, it was solely collateral damage from gold’s own selling anomaly. Gold was crushed when the Fed-driven levitation in the general stock markets sucked capital out of the flagship GLD gold ETF, which was forced to dump record amounts of gold bullion. The resulting gold weakness ignited a handful of ultra-rare futures forced liquidations.(...)Click here to continue reading the original ETFDailyNews.com article: Silver Is At A Powerful Technical LaunchpadYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here