Silver has been on quite the tear recently, rising around 17% from its July low. I last looked at silver in my post on July 11, titled Has Silver Bottomed Out? when the shiny metal creating a base at the $26 level.
From that support created at $26, silver has reached possible resistance of its 300-day moving average. Below I’ve posted a 10-year chart to show its price action upon reaching its 300-day MA, which it seems to respond pretty well to when tested as support or resistance.
However, when we look at momentum (not shown), it seems there could still be some room for silver to run as the indicators I watch aren’t showing any types of divergences and one still isn’t oversold quite yet. So while some type of consolidation may make sense for silver, it doesn’t mean it has lost all of its juice. As we saw in October 2011 and Feb 2012, silver broke past its 300-MA but soon retreated back below it. We’ll see if today is any different.
