SUBSCRIBE

CATEGORIES

Here’s Why Silver Should Keep Moving Higher in 2021

imageStock Markets20 minutes ago (Apr 27, 2021 01:30PM ET)

(C) Reuters. Here’s Why Silver Should Keep Moving Higher in 2021

Silver (SLV) is up 10% over the last month. Are these gains just a bounce or the start of a new uptrend? Taylor Dart explains why the bull market may be resuming for the metal.While the major market averages continue to make new highs, the precious metals market has seen a sluggish start to the year. Fortunately, the metals have started off Q2 much better, but silver (SLV) is still underperforming the S&P-500 by more than 1000 basis points year-to-date. The good news is that the recent outperformance has led to many investors giving up on the trade, with sentiment mostly reset from its massive spike in February. This has put the conditions in place for a strong move higher if silver can get past resistance, and one of the best ways to play the sector is junior silver producer GoGold Resources (GLGDF).

(Source: Daily Sentiment Index Data, Author’s Chart)

As shown in the above chart, sentiment for silver has shifted dramatically from early February, with sentiment readings falling from 90% bulls to 30% bulls. As we can see, this has led to a significant improvement in silver’s long-term moving average for sentiment, given that this moving average has plunged from a reading of 79% bulls to 45% bulls. While this reading is not yet on a buy signal and would require further weakness to drop into the buy zone, it is a massive improvement, especially considering that silver made a new multi-year high last week.

Continue reading on StockNews

Here’s Why Silver Should Keep Moving Higher in 2021

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.