Sunday, February 08, 2009

Silver - just wait until the Greed will come back. SLV, XAU, SLW, SST.v, KTN.v, OK.v, MGN, CNU.v, FVI.v, SBB.v, SAX.to, RVM.to, ASM.v.

Silver is out of fashion, Silver miners are filing for bankruptcies and Juniors were selling below cash value in December. Victim of its dual monetary and commodity qualities Silver was punished hard during the Irrational Delusion stage of recent madness. Silver miners and Silver streams SLW SST.v companies were sold into oblivion because of their Debts and Leverage to silver price.
Time is for a Change here in a public perception: Silver is up more then 50% from its low at 8.4 in October 2008 at Friday's close at 13.16 USD/oz. Technically Bear move from its highs of above 20 USD/oz is over. Strong silver companies are up more then 100% SSRI, Juniors are making over 100% up from lows as well SST.v, OK.v, MGN, SBB.v, CNU.v among many of them.
It will continue to be a very volatile trade, but technical picture is very strong on a weekly. RSI is confirming recent higher highs, MACD after Buy cross over is moving up and only approaching positive territory, STO has a lot of positive momentum.
Candles have made a Bullish Three White Soldiers formation breaking out MA200. With enough momentum in Gold going up next week, resistance between 13-14 level could be cleared and 15 USD/oz level will be not a distant dream any more.
We expect that Silver miners, Silver Streams and particularly Junior Silver mining companies with appropriate quality in resources/management/financing will remind us sweet days of Bull market with silver price approaching 15 USD.
Cherry picking will be the name of the game as usual.
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