Is Now the Opportune Time to Buy Silver?

silver gold bars
Written by Mike Hammer

Just 9 short days ago your friendly Gold Enthusiast advised that he’s waiting for signs of an uptrend before buying into silver. Just exactly what that means might be up for debate; usually, an uptrend requires starting from a decent base with relatively low volume, and from there a rise in both price and volume.

Are we seeing that in the current chart for SLV?

(Source: Fidelity.com)

The 6-month chart is both enlightening and confusing.  During Example 1, we see what looks like a promising little candlestick base occuring at the same time as a low RSI – but silver doesn’t really go anywhere, only up about 40 cents before the run dies out.

Example 2 is a little better from a price and RSI perspective – a gain of 1.40 as silver ran from an RSI down around 32 up to 70.  But volume didn’t give a good indication of going down before the run, then increasing during the run.

Things like indicators not working make it hard to anticipate, predict, or in general have confidence in trading.

Right now silver has gotten close to…

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About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as continuing themes. Mike graduated with a business degree and spent years as a financial advisor, before moving to New York and to pursue a career in IT and education. For more than a decade Mike has been working with the Adam Mesh Trading Group as a stock market and commodities mentor. He’s trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to educational webinars.

Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keeps him in touch with "the student mindset".

Mike focuses on the precious metals markets, the energy industry, and the financial sector. His motto is "Plan your trade, then trade your plan!"

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