The above table depicts just what a hard time silver producers had today. Most stocks were hammered as investors appeared to prefer the safety of the dollar.
The chart below shows silver prices hitting the bottom of the horizontal range it has been trading within for some time now. The RSI dropped to 22.90 suggesting that silver is severely oversold, so a bounce should be on the cards, but don’t count on it, these situations can persist despite what the technical indicators are suggesting.
As we write silver prices are struggling to hold onto the $27.00 level, so we will see what trading in the UK does prior to the NYSE trading session commencing.
As we have said many times in the past this tiny sector is not for the faint hearted and it can be a white knuckle ride.
With gold, silver and Uranium stocks being out of favor one must decide if this is a problem or an opportunity. We have steadfastly refused to buy gold and silver mining stocks for the last two years and as evidenced by the HUI we feel that our decision to hold back has been vindicated. The damage done to the mining sector may not be over yet but this demise is starting to offer up some exciting opportunities in my view.
Great care will be needed in the selection process in order to generate a reasonable profit and that’s where our new venture begins. ‘Stock Trader’ has begun trading on behalf of ourselves and our much valued subscribers, all exciting stuff which we are really looking forward to, if you wish to join us then please subscribe below;
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