Silver Fights Intraday Reversal, Closes Higher On Good Volume
Contributor Since 2010
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!