Sunday, June 22, 2014

Silver:To log or not to log?

Gold finally followed miners (GDX) and broke out.Now both Gold and GDX have bounced at 50 EMA(weekly).In order to see a sustained rally the bulls need Gold and GDX to stay for a few weeks time  over 50 EMA(weekly) and later on 20EMA(weekly) cross 50EMA

 Silver is an interesting case.In arithmetic price scale it seems that silver just broke out from two resistance lines (the older one starting from 2011 top and the later from summer 2013)

However in log price terms Silver is still bellow both these resistance lines.

Either way Silver is still bellow 50EMA(weekly).It looks bullish but we prefer to see a confirmation of this trend (we would like to see Silver staying above 50EMA(weekly) for a few weeks)