We look at the silver price uptrend.
Bullion.Directory precious metals analysis 19 January, 2015
By Terry Kinder
Investor, Technical Analyst
It’s something we haven’t seen much lately – a silver price uptrend. It looks pretty solid so far, but is there anything that might throw it off track?
The Silver Price Uptrend has been pretty strong so far.
It seems that silver, like gold, has finally sprung back to life, perhaps in part due to ongoing concerns about Eurozone stability. This silver price uptrend offers the first ray of hope in months that the silver price might go higher.
Silver Price Uptrend: Silver has had an impressive run higher recently.
Technically, silver does look pretty strong on the above chart. It is not yet overbought on RSI. There have been several above average days of volume where the silver price has risen. The silver price uptrend also appears to have some conviction (the indicator is above the yellow dashed line) as the Bull-Bear Control Indicator shows the bulls in control.
MACD has crossed above the zero line which makes it more likely the silver price uptrend can be sustained.
However, there are a couple of things that may cast doubt on the silver price uptrend:
1) At the top of the chart, the silver price uptrend has taken it quite far above the Hurst Bands (bands that include green and pink shaded areas). Silver has a habit of jumping above and below the bands quite frequently, so it’s possible silver could remain above the bands for a while. However, what is more concerning is that the Hurst Bands are dipping below the Schiff Pitchfork and the upward sloping sell trigger line.
Price tends to travel up and down the Hurst Bands. When price eventually comes back down it could reach the green shaded area (oversold) or below. That would take it out of the upward sloping pitchfork and also below the sell trigger line. Essentially, a move back down in silver might take out the fresh uptrend and result in a reversal of the trend.
2) The Hurst Oscillator (straight lines with pink and green shaded areas) shows the same thing as the Hurst Bands above, only in a linear form. The silver price bumped right against the overbought area and, at least temporarily, reversed lower.
Right now, the silver price uptrend, still looks pretty good technically, but with the price overbought in relation to the Hurst Bands it probably pays to be cautious as the silver price, when it does reverse lower, could do so pretty sharply.
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