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Another Day - Another Breakout!

Commentaries & Views

Wednesday’s breakout by GDX, the miners ETF, from congestion between 24.50 and 26.25 sets up a target at 30.0. (Charts courtesy

Price is rising inside the blue channel.  As long as this channel holds, the uptrend remains intact.  In the event of a pullback there is good support at 24.00.  The supporting indicators are positive, especially the A/D line at the bottom.  The moving averages are in positive alignment and rising – bullish.  A rising trend in GDX is bullish for miners as well as gold bullion.

In a precious metals bull market, silver often leads the way.  Until recently, silver has lagged behind.  Last week silver came to life after an interesting article by Alasdair Macleod titled:  “A Whale is Accumulating Silver Futures”. (Google the title if you haven’t read it).

Featured is the daily silver chart from Tuesday.  Price has broken out at the blue arrow and this has turned the trend bullish.  The supporting indicators are positive and the moving averages are rising.  On a percentage basis, silver is beginning to outperform gold, and that is bullish for silver, gold and also for the producing mines.

This chart courtesy shows investors are adding physical silver to various trusts and ETFs in record amounts.

DISCLAIMER:  Please do your own due diligence.  Peter Degraaf is NOT responsible for your trading decisions.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.