As mentioned in my update on precious metals dated June 6th (click here), silver’s chart looks like it could be interesting going forward here soon. One of the technical analysts that I follow wrote a blog piece dated June 8th that actually discussed how silver has a history of frequently making important lows/highs into FOMC meetings (the next one beginning tomorrow) – click here to read his piece.
Saying all of this is my way of reminding traders to pay attention to silver, gold and to gold miners for the next week or so … we may be on the verge of starting an expansion phase in these sectors. Here are some charts …
Silver Futures (SI) – Daily Chart
Gold Miner ETF (GDX) – Daily Chart
Price for the GDX miners broke the daily ATR resistance level back on April 11th … price to me has “confirmed” that break higher with the consolidation since that date. Now all we need to see is the desire and willingness to break higher.
Gold Miner 3x Leveraged Bull ETF (NUGT) – Daily Chart
I would think that NUGT should at least get to the 61.8% level in the SLOT resistance zone … that would mean price is getting ready to make a move up to about $31.60 or about 24% higher than today’s closing price.
WPM – Daily Chart
I am long a good sized position in WPM, a Canadian royalty mining company, in my retirement accounts here in Canada. They announced another asset purchase recently … this one in cobalt as WPM’s management continue to move away from being totally dependent in silver where they originally focused the Company’s attention. This is probably just another sign that traders should be looking at silver after years of terrible performance/returns.
Cheers … Leaf_West