• 23 hours No Shirt, No Shoes, No Mask, No Service
  • 2 days Is Bitcoin Actually Worth The Energy It Uses?
  • 2 days Insurance Companies Are Turning People Away As COVID-19 Crisis Escalates
  • 2 days Mining Exploration To Drop By Nearly 30% Despite Gold Boom
  • 2 days Europe Set To Unveil Its $500 Billion 'Green Deal'
  • 3 days Major Diamond Mine Slashes Production
  • 3 days Social Security Could Dry Up In Less Than A Decade
  • 4 days Europe On The Brink Of Economic Crisis
  • 4 days Barrick Gold Launches Exploration Program In Japan
  • 4 days COVID-19 Is A Hacker’s Paradise
  • 4 days Why Big Finance Is Bailing On Fossil Fuels
  • 5 days A New Trade War Will Send Gold Even Higher
  • 5 days Could COVID-19 Lead To Authoritarianism?
  • 6 days The $30 Trillion Mega-Trend To Watch As Markets Bounce Back
  • 6 days Gold Soars To 7-Year Highs
  • 7 days From Smartphones To Smart VR Acquisition, Apple Pushes the Envelope
  • 9 days Why Covid-19 Won’t Kill The Renewable Revolution
  • 10 days COVID-19 Could Spark A Global Food Crisis
  • 10 days How To Play The Next Big Rally In Gold
  • 11 days Chinese Investment In The U.S. Has Plunged By 90%
Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

  1. Home
  2. Markets
  3. Other

Silver Bull Market Still in Force

As we await the end of this silver correction, it is appropriate to stand back and look at the bigger picture. To that end, take a look at this chart which shows silver's Bollinger bands, but in particular the midline which is also the 20 month moving average.

Silver Monthly Chart
Larger Image

Going way back to November 1998 after the Warren Buffett spike, the OHLC bar range of silver dropped below this moving average. With that silver re-entered its long term bear market and what one would have been looking for with this indicator was for the silver's OHLC range to complete one full month above and clear of the 20 month moving average.

This did not happen until May 2002 when silver's low range for the month was a mere one cent above the moving average and silver closed the month at $5.02. This signaled the beginning of a silver bull market and the metal was to trade above this moving average until September 2008 when the OHLC range of silver traded fully below the moving average. That meant this moving average kept you right on silver for six years and four months.

Having said that, I regard this setup as more of a buy signal as the collapse below the moving average can be quite dramatic and swallow a lot of your profits. I prefer to use more targeted indicators to identify the sell points.

But getting back to this moving average, as the Credit Crunch of 2009 progressed, one would again patiently wait until monthly silver fully traded above the average. That signal came one year later on September 2009 when silver closed out at $16.62. The end came in May 2012 when the opposite happened and silver fully traded below the moving average and closed out at $27.69. That adds up to a two year and eight month bull run.

Now we come to the present day and having spent exactly four years under the moving average, silver broke clear this May with monthly silver closing at $15.99. Based on our prior examples, this suggests silver has now entered a new multi-year bull market.

 


Further analysis of silver can be had by going to our silver blog at http://silveranalyst.blogspot.com where readers can obtain subscription details for the Silver Analyst newsletter. A free sample copy can be obtained by emailing silveranalysis@yahoo.co.uk.

 

Back to homepage

Leave a comment

Leave a comment