Silver Price – Bullish Flag Formation

by Olivier on June 17, 2010

Silver is starting to break out of its bullish flag I drew into the daily chart. The precious metal stocks did well today but the big caps and the most important PM-related ETFs showed lackluster volume on today’s move to the upside. GG – Goldcorp, SIL – Silver ETF, SLV – Silver ETF, SLW – Silver Wheaton, GDX Gold miner ETF, GDXJ – Junior Gold miner ETF are the ones that come to mind. All of them displayed low volume.

In order to increase odds for a rally to the upside in the precious metals, decent follow through and volume starting to kick in would be required. Low volume during upmoves raises a red flag though. Pricewise today’s action is bullish. Price is always king. In a perfect world volume would need to confirm price action.

Technically speaking the pattern for silver looks good as the bullish flag on the daily provides decent pattern pressure to the upside. Right now the price of Silver is on the verge of breaking out of that pattern.

Silver Bullish Flag Formation Technical Analysis Price Chart Pattern Precious Metals

Up-to-date Silver daily chart on my public list.

Going through my public list and all the sector overview charts I see lots of stuff starting to turn and move to the upside. The tide is slowly starting to change and it feels like the bulls are starting to get back in control. We are not there yet but the signs are increasing. Clearly an environment that would make it even easier for the precious metal stocks to move up.

Pursue one great decisive aim with force and determination. – Karl von Clausewitz

My public list with all my charts can be viewed here:

Buenas noches!

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