Silver: Tarnished or Ready to Shine?

• Posted by Greg Harmon
• on December 23rd, 2014

Silver is that rare metal that crosses the gap from functional to aesthetic. At this time of year many are purchasing jewelry made of Silver. Many like it for its shininess. In fact Silver is the most reflective metal on the planet. Its other properties make a useful industrial metal as well. It has high thermal conductivity and electrical conductivity. It is the complete package.

Yet as seen in the chart below, it has been very much out of favor since the April 2011 high. The long march higher from 2002 was briefly interrupted by the financial crisis, but quickly resumed. That is a distant memory. But during this sell off, there is a possible bright spot, a shining light, as we move into the Christmas gift giving season and the end of the year.

That shiny metal is forming a Star. A doji star as well. The monthly chart shows this happening at the lower Bollinger Band® and the 78.6% Fibonacci retracement of the long run higher. This is often a identified as a reversal candle, but is actually a sign of indecision that can resolve in either direction. Keep an eye on Silver into the new year.

Get my book, Trading Options: Using Technical Analysis to Design Winning Options Trades.

 

---

 

Want to learn more about Dragonfly Capital Views?
Dragonfly Capital Views Performance Through December 2014 Expiry and sign up here

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus