Silver Long term chart shows price evolution in 3 phases since 2007-2008 crisis : 1/ A bottom at USD 8.40 in 2008 followed by a bull move into USd 30 end 2010 .The 6 months ensuing nearly doubling to USD 50 was clearly a market exaggeration even tough nobody could say at that time where the move would stop ( follow the trend was just fine .. see benefit of MACD during strong trends) 2/ A 5 years bear market from 2011 till early 2016 with a double bottom around USD 14 in 2015 as the base for the next move.. 3/ a developping up trend since 1 year with an initial and quick 50% gain followed by 6 months down reaction .
Silver shorter 2 years chart shows that the last 6 months down move seem to have been stopped by the crosssing of USD 17-17.50 area ( see purple downtrend channel ). A bullish MACD signal apperaed last week on the weekly chart.
How to trade Silver from here : Definitely long but with caution as technically we do not want to see price below the USD 17 barrier again . The mid long term picture would even improve above USD 18 where the 200 days AND weeks line lies red lines on both charts ) .
The 1 to 1 proxy investment for Silver spot is the ishares Silver (SLV) quoted on the NY Exchange . Companies like Hecla Mining (HL), Pan American Silver (PAAS) , First Majestic Silver (AG) are stocks that one can trade to « play » the Metal and benefit/ suffer big leverage effect. Silver Wheaton (SLW) as a streaming company is less volatile if i dare say so with for example a 50% down move between August and december and + 40% since december. I will publish some other charts in the next days.
Little warning : The investor betting on Silver and silver mines must be ready to exit quickly if a reversal is confirmed even at a small loss .