Technical Analysis: Silver Could Be about to Run

2016 began well for silver.

And then, well… it got worse.

In the first few months of last year, silver ran from near $14 to $21.  But by June, the party was over.  Silver would plummet from its sky-high valuation to $15.96.

However, it looks to have found solid support and is just beginning to accelerate higher.  In fact, should the latest rally continue, we could see a retest of $19.  Also, interesting to note, momentum metrics, such as MACD, Money Flow and RSI called the bottom of the downtrend, just as they did with gold.

 

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Better yet, despite silver’s powerful gains in 2017, it still remains quite undervalued if we look at the gold to silver ratio, which shows how many ounces of silver are needed to buy one ounce of gold. 

The ratio is now at 69.2, which means it would take 69.2 ounces of silver to buy one ounce of gold.  The average ratio is 61.55.  Should the ratio reverse to historical norms chances are good that silver could run even higher from current prices. 

Some of the best ways to trade potential upside in silver include:

  • Pan American Silver (PAAS), which last traded at $20.92
  • iShares Silver Trust (SLV), which last traded at $16.85
  • Silver Wheaton Corporation (SLW), which last traded at $22.74
  • Endeavour Silver (EXK), which last traded at $4.82

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Learn Simple, High Probability Setups from Pro Traders. Prove Your 
Mastery of Their Strategies and Get Paid To Trade! Learn How Here

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