by Clive Maund
Silver continues to put in a laggardly performance relative to gold, but this is not a cause for concern, it is normal at this stage in the cycle, and it gives would be investors in the sector more time to position themselves.
On its latest 10-year chart we can see that it is rather remarkable that silver is still only $4 to $5 above the lows of its bearmarket late in 2015 and early in 2016. However, with gold now romping ahead, this is not a situation that we can expect to continue for much longer. Positive points to observe on this chart are how silver is now advancing away from the 2nd low of a giant Double Bottom on strong volume that is driving its volume indicators higher, which is clearly a positive sign, and with moving averages now in strongly bullish alignment, it is well positioned to work its way through the bands of resistance shown that until now have held it in restraint, and that is what it is doing. Once it gets above the uppermost of the resistance bands shown it should accelerate, although it will then have to contend with resistance at and above the $26 level.