Yesterday gold and silver took off after the FOMC statement was released. Silver managed to close right above $25.00 an ounce and many silver mining stocks soared. I don’t know what will happen today, but things certainly seemed to be lined up for the metals and mining stocks now. Another daily close above that level will be confirmation that the next big rally is starting now.
For instance, take a look at this silver ETF that I own PSLV.
The simple triangle silver consolidation pattern appears to be complete. Silver stocks are more confirming the action in the metals as all of the ones I own and track went up, with some simply soaring. Check out for instance Hecla Mining.
I own HL and it went up 7.38% yesterday. I also have a position in CDE and it went completely crazy.
I don’t like to buy stocks that just made a new 52-week high. One other stock I also own that does have a good entry point is Wheaton Precious Metals.
WPM is still in a short-term trading range with resistance at $42.50 and support at $40.00. In my opinion one could buy here and put a stop below $40.00.
I talked about the overall market and things going forward yesterday in this interview with Jim Goddard of www.howestreet.com.
The Fed decision came with more dovish talk. In the summer the stock market rally became very narrow with the action dominated by several big cap tech favorites. Since the election and vaccine news it has spread into many sectors and that is going to help the market in the coming months.
If you are new to trading grab my book Strategic Stock Trading.
-Mike
