The metals have recently been consolidating their moves from the December lows and silver along with its mining shares are at a point which deserves watching. Both silver and its shares made bullish divergences at the end of last year and staged a stunning rally in the first month of 2012. Recently, prices have been consolidating those gains.

Both charts have classic continuation patterns in place for a resumption of the uptrend. SIL has shown a mild breach of the downtrend line in place while silver needs to make a close above the current downtrend line to confirm a resumption to the upside. I would be hesitant to buy into the silver mining shares until the upside price action is confirmed in the metal.

Dr. Chad Bennis
-an independent thinker and trader

www.wheatcorncattlepigs.wordpress.com

Dr.ChadBennis@gmail.com

© 2012 Copyright Dr. Chad Bennis - All Rights Reserved

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