Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

Silver Outperforming Gold

Silver Outperforming Gold
By Mike Paulenoff, www.MPTrader.com

Who would have thought that Gold would be down $26, and Silver would be up $0.34? Let's take a look at the pattern that has developed in spot silver. Spot silver prices, for the most part, crashed from the mid-March high at $21.40 to the mid-October low at $9.06 (-58%). Let's notice that the October low also coincided with a glaring positive momentum (RSI) divergence, which usually indicates that the power underlying the dominant trend is dissipating -- ahead of a directional reversal. Although it is too early to declare the downtrend complete, both the pattern off of the March high into the October low and the RSI divergence -- not to mention at 58% loss of value -- strongly suggest that silver prices should be in the early stages of a potent recovery rally. My initial target zone is 11.00-11.50, and for ETF traders the ETF is the iShares Silver (AMEX: SLV).

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!