Silver stocks are starting to break out of long basing patterns. Although I have followed SLW – Silver Wheaton, SLV – iShares Silver Trust ETF and the price of silver for quite some time on my public list I have somewhat neglected the sector. Today I added MVG – MAG Silver to the list as it popped up in my above average volume scans. This could be the start of a move to the upside. Keep in mind though most silver mining stocks have quite some overhead resistance they will need to fight through. So from a purely technical perspective there is no need to rush things as they are unlikely to develop immediate explosive momentum to the upside as opposed to stocks trading at all time highs.
That said it is time to watch silver stocks very closely. I have also added a Silver Sector Overview Chart with big cap silver mining stocks featuring: SLW – Silver Wheaton, PAAS – Pan American Silver, SSRI – Silver Standard Resources, HL – Hecla Mining, CDE – Coeur d’Alene Mines and MVG – MAG Silver. I will add a Silver Sector Overview chart with high potential and more aggressive small cap junior and exploration silver mining stocks soon. I haven’t decided yet which ones will be part of that chart. IPT.V – Impact Silver, MRZ.V – Mirasol Resources, ECU.TO – Ecu Silver Mining are but a few that come to mind.
Here’s the MVG – Mag Silver chart (MAG.TO on the TSX) that shows the breakout accompanied by higher than average volume. Click on the link below the chart to open a bigger chart. The basing pattern is easier to see with the bigger chart.
Up-to-date Big Format MVG – MAG Silver Chart on my public list.
Up-to-date Small Format MVG – MAG Silver Chart on my public list.
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