Congratulations to silver investors, silver closed above $30 once again on an overdue extension from the 20 day MA. Though the volume wasn’t quite as high as I expected, price activity did exactly what I had been predicting over the last several days.
iShares Silver Trust Up on above average volume.
I expect the volume to pick up tomorrow – and don’t be surprised if we take out the 30 yr high and possibly even close above it.
The top point of the wedge is $30.67 while the bottom is $27.97 and the breakout point is 29.24 which was the opening price today.
$30.67 – $27.97 = $2.70
$29.24 + $2.70 = $31.94
I believe the price target I’ve set for January was $32, you can see that the price target set by the wedge agrees.
In other metals news, Rare Earths had a big day as China cut its rare earth export quota and almost all of the sector was up substantially. Great Western Minerals finished up 12.5%, Rare Element Resources finished up 10.32%, Avalon Rare Metals finished up 9.91%, and Lynas Corp finished up 11.73%.
Only Molycorp finished lower as they reversed midday after being up by 7.7% at one point and eventually closing down 1%. The reversal was dramatic and covered a lot of ground but did not manage to become a key reversal and it also left a 14 day and an 11 day trendline intact. I expect some consolidation of the stock, but remain bullish about the company’s future.