The above is Silver. Silver broke up out of its 1st and 2nd hurdles this week. The 2nd is the lower falling trend line, shown.
It is a fair assumption it will close above this line tonight. In other words, it will have a weekly close above Resistance. This is important to the bullish case.
The target now for Silver is $26/26.5. That equates to c $1500/1550 for Gold. As recently as December Gold was sub $1200.
We bought, heavily, into Gold and Small Capitalisation Gold Mining shares in the Autumn of last year.
The leader (leading indicator) in the Precious Metals market – Small Cap Miners – has been moving like a rocket ship. In just the last two weeks it has rocketed a massive 28% (in US$).
The technical indicators are very positive and confirming the trend is up.
The minimum target is $60/65 but I suspect it will be more like $90.
NB. In early 2011, the GDXJ Index peaked at $180. Look where it is now, in comparison.
I hasten to say though we remain of the view, until something changes it, that precious metals are still in a long term bear market, which started in 2011.
We would have to see Silver rise above $28, with strength, before we would even contemplate that the long term trend has changed from down to up, for Gold and Silver and mining shares.
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