Silver has been in the news for its recent rally and the fall over the last few days. It broke out from a consolidation zone around $14-18 where it spent 5 years. It hit a high of close to $30 before falling in the last few weeks to $24. Is there more shine ahead?
To answer that let us zoom out and see the monthly charts with the 12 period moving average (MA).
The MACD zero line crossovers have indicated huge bull moves in the past. In 2001 it gave a buy signal and Silver rallied from $4 to $48. After that Silver slowly fell from $48 to $14. It then consolidated nicely and has now broken out. MACD has again given a buy. Since these are on monthly charts it has huge potential to zoom further. It has lot of pent up energy having formed a base for 5 years. Short term volatility and pullbacks are bound to happen. It would make sense to ride this further till the charts indicate that the move is over.
