Silver opened higher and fought off the lows twice intraday which had the price slightly lower thatn yesterday’s close, but a lot of buying volume came in and spot closed up $.47 (1.68%). I think that last week’s lows of $26.38 is an absolute bottom and below I’ll explain why.
There are several reasons as to why I believe the bottom has been put in this market:
- Silver made new lows below the previous pivot point of $26.50 then reversed last friday on high volume to close out higher on the week
- Today, it closed above the 20 Day MA, and the top trendline which had been a moving resistance level for the month of January
- During today’s session, silver fought two attempts from bears to push the price into negative territory and after that the price surged up and above 1% with much healthier volume backing from SLV.
- The MACD is a day or two away from a bullish crossover
- The RSI and the slow stochastic have plenty of room to move higher and are coming out of a rounded bottom
This is about as short of a technical analysis as I’ll do, but it’s an important one. Load up on mining shares and physical bullion!