A premium (NFTRH+) update for your consideration.
In-week updates are a vital part of the overall NFTRH service, adding color to the analysis presented weekly in Notes From the Rabbit Hole.
Silver has been in a good correction within its uptrend. This is serving to reset sentiment and if the pullback holds certain parameters as expected, it is a healthy buy opportunity within a larger bull move.
We had noted that there was support at 31, where a silver bull looking to buy might take interest. We also noted more support at 30. Better support, actually. That is still open but was almost tested yesterday.
However, the way the precious metals usually roll is for drama at the end of a correction. So a quick drop and test of the uptrending 200 day moving average (orange) that makes a higher low to the August low of 26.41 or preferably, the September low of 27.67 is doable as well. That would sure put an exclamation point on the precious metals rally.
In discussing gold stocks we had noted that GDX/HUI had not tested their 200 averages throughout the rally from March. That would be a healthy situation and appears upcoming. While silver has come close, it too could benefit from such a test, washing away the clingers-on. Not a prediction or perhaps even probability, but a good possibility.
Corrections tend to end when you feel it in your gut. I don’t at this time. That could be because of the shock absorbers I had from hedging and from having sold silver (PSVL) and some gold stocks. But I have not sensed capitulation yet in the PM complex.
If you enjoyed this analysis, then imagine having a precise and educational market guide that doesn’t sugarcoat the truth. My Notes From The Rabbit Hole (NFTRH) does just that - mixing regular and actionable market calls covering stocks, gold, and currencies with a healthy dose of reality and risk management. Subscribe to my Notes From The Rabbit Hole (with a 16-day free trial) and let’s keep it real and profitable!
Gary Tanashian